TOKYO, Nov 21 (Reuters) - Japanese shares fell on

Thursday as technology stocks tracked the Nasdaq's overnight

decline, while financial shares rose amid bets for the Bank of

Japan's interest rate hike.

The Nikkei was down 0.83% at 38,033.22 by the midday

break, while the broader Topix slipped 0.34% to

2,689.07.

"Chip-related shares fell to track U.S. equities lower but

overall the market struggled to find market-moving cues after

Nvidia ( NVDA ) reported its earnings," said Shingo Ide, chief equity

strategist at NLI Research Institute.

The tech-heavy Nasdaq closed lower on Wednesday, taking a

break from the prior session's rally, as investors worried about

escalating Russia-Ukraine tensions and weak results from Target ( TGT )

.

AI chipmaker Nvidia ( NVDA ) fell 0.76% during the trading

session ahead of its results on Wednesday and fell further after

the bell when its fourth-quarter revenue forecast was slightly

above estimates, but failed to meet lofty expectations of some

investors.

Nvidia's ( NVDA ) outlook is key for the Nikkei share average, which

is heavily affected by chip-related stocks, such as chip-testing

equipment maker Advantest ( ADTTF ).

On Thursday, Advantest ( ADTTF ) fell 2.74% and chip-making equipment

maker Tokyo Electron ( TOELF ) inched down 0.05%.

Technology start-up investor SoftBank Group fell

1.86%.

Financial shares rose as bets over the BOJ's policy rate

hike lifted yields. Mizuho Financial Group ( MFG ) rose 1.69%

to become the biggest support for the Topix index.

Sumitomo Mitsui Financial Group ( SMFG ) gained 0.3% and

insurer Tokio Marine Holdings ( TKOMF ) rose 0.6%.

Japanese government bond yields rose on Thursday, with the

five-year bond yield hitting 0.725%, its highest

level since August 2009.

Overnight Index Swap (OIS) indicated a 47.67% chance of the

BOJ raising rates to 0.5% at its December policy meeting.

Tokyo Gas ( TKGSF ) rose 5.21% to become the biggest

percentage gainer on the Nikkei, following a 13% surge in the

previous session. U.S. activist investor Elliott Management has

taken a 5.03% stake in the nation's biggest city gas provider.