* Exporters dragged lower by strong yen, economy doubts
* Machinery stocks hurt after unexpected fall in May orders
TOKYO, July 8 (Reuters) - Japan's Nikkei average shed 1.8 percent on Wednesday, as exporters such as Honda Motor fell on a stronger yen and after talk of a second U.S. government stimulus plan sparked worries that the economy is not yet on the path to recovery.
Komatsu and other machinery makers slid after data showing Japan's core private-sector machinery orders unexpectedly fell 3.0 percent in May from the previous month, suggesting a recovery in capital spending may be delayed.
"Uncertainty about U.S. consumer spending and the outlook for corporate earnings is spurring yen strength and that's hitting shares of exporters here," said Hiroaki Kuramochi, chief equity marketing officer at Tokai Tokyo Securities.
The benchmark Nikkei fell 174.32 points to 9,473.47. It fell 0.3 percent the previous day, booking falls for five straight days, in which it shed 3.1 percent.
The broader Topix slid 2.1 percent to 890.30.
An adviser to President Barack Obama said on Tuesday the United States should be planning for a possible second round of fiscal stimulus to further prop up the economy after the $787 billion rescue package launched in February.
That heightened fears about the economic recovery and that the corporate earnings season starting this week will be weak, sending the Dow Jones industrial average to its lowest close since April 28.
The yen and dollar rose broadly on Tuesday also on uncertainty about the global economic outlook.
The dollar was down 0.4 percent at 94.52 yen in early Asia trade. Investors fret over a stronger yen as it eats into exporters' profits when they are repatriated.
"Calls for more stimulus steps are emerging in the U.S. as the ones it has already launched haven't led to an improvement in consumption," said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.
"But there's still a possibility that those economic steps which were quite large will gradually start to have an impact. Talk like this is also a sign that the government is determined not to let the economy deteriorate further."
Machinery stocks fell, with Komatsu shedding 3.6 percent to 1,384 yen. Kubota Corp dropped 4.1 percent to 735 yen and Hitachi Construction sank 4.6 percent to 1,424 yen.
Exporters also lost ground. Honda Motor Co declined 3.8 percent to 2,435 yen and Toyota Motor Corp fell 3.1 percent to 3,490 yen.
Canon Inc retreated 2.2 percent to 2,965 yen. (Reporting by Aiko Hayashi; Editing by Edwina Gibbs)