TOKYO, Sept 5 (Reuters) - Japan's Nikkei share average

fell on Thursday, weighed down by a stronger yen and losses in

semiconductor-related stocks, while investors awaited U.S.

non-farm payroll data due on Friday to gauge the strength of the

world's largest economy.

The Nikkei was down 0.35% at 36,917.44 by the midday

break after sliding more than 1% earlier in the session. The

benchmark was on track for a third straight session of falls.

The broader Topix recouped early losses to end the

morning session up 0.39% at 2,643.83.

"The labour data out so far this week has not really cooled

concerns about the U.S. economy, and there is a slight tilt

towards expecting the Fed's first rate cut to be of a larger

magnitude," making the dollar/yen prone to more slides, said

Charu Chanana, global market strategist and head of FX strategy

at Saxo.

"This could continue to take some of the speculator froth

out of Japanese equities."

The yen edged 0.26% higher to 143.56 per dollar during

morning trade before easing, and has already gained nearly 2%

for the week thus far.

U.S. stocks closed mixed on Wednesday. Shares of chip star

Nvidia ( NVDA ), which suffered a massive $279 billion drop in

market value on Tuesday, closed 1.7% lower.

In Japan, shares of chip-related majors Tokyo Electron ( TOELF )

and Advantest ( ADTTF ) slid 2.5% and 2.1%,

respectively. Advantest ( ADTTF ) counts Nvidia ( NVDA ) among its customers.

Renesas Electronics ( RNECF ) fell 3.6% to become the largest

percentage loser on the Nikkei.

Among individual stocks, Nippon Steel ( NISTF ) recouped

early losses to trade up 1.4%. Sources told Reuters on Wednesday

that U.S. President Joe Biden was close to blocking Nippon

Steel's ( NISTF ) takeover of U.S. Steel on national security

risks.

Nikkei heavyweight Fast Retailing ( FRCOF ) fell 3.1% to pull

the index further down.