(Updates at 0200 GMT)

TOKYO, Nov 7 (Reuters) - Japan's Nikkei share average

reversed course to trade lower on Thursday, as investors booked

profits from sharp gains in the previous session.

The Nikkei was down 0.33% at 39,349.23, as of 0200

GMT, after rising 2.6% on Wednesday to a three-week closing

high.

The benchmark rose as much as 1% earlier in the session,

tracking Wall Street's record close overnight after Republican

Donald Trump won the 2024 U.S. presidential election.

Trump's victory unleashed a massive rally in the dollar,

drove stocks to record highs and punished bond prices.

"Nikkei's reversal indicated that the sharp gains in the

previous session were led by short-term investors who bet on a

rally on Trump trades," said Takehiko Masuzawa, trading head at

Phillip Securities Japan.

"They quickly sold stocks to book profits."

Uniqlo-brand owner Fast Retailing ( FRCOF ) fell 2.52% to

become the biggest drag on the Nikkei. Chip-making equipment

maker Tokyo Electron ( TOELF ) lost 2.5%.

Home interior goods maker and retailer Nitori Holdings ( NCLTF )

slipped 5.57%.

The broader Topix rose 0.91% to 2,740.54, with

Toyota Motor ( TM ) up 4.27%.

Financials gained as bond yields rose, with Mitsubishi UFJ

Financial Group ( MUFG ) and Sumitomo Mitsui Financial Group ( SMFG )

up 2.68% and 1.99%, respectively.

Insurer Tokio Marine Holdings ( TKOMF ) gained 2.8%.

Honda Motor ( HMC ) inched up 0.07% after falling 6.4% in

the previous session.

Of the 225 Nikkei components, 155 stocks rose, 69 fell, and

one traded flat.