(Updates with closing prices)

By Junko Fujita

TOKYO, Aug 26 (Reuters) - Japan's Nikkei share average

ended at a more than two-week low on Tuesday, as the yen

strengthened after U.S. President Donald Trump fired a Federal

Reserve governor.

The Nikkei snapped a two-session winning run,

falling 0.97% to 42,394.4, its lowest close since August 8.

The broader Topix slipped 1.08% to 3,071.99.

"The market was surprised with the news about Cook and

reacted accordingly," said Shuutarou Yasuda, a market analyst at

Tokai Tokyo Intelligence Laboratory.

"Also, investors calmed down from the previous session, in

which optimism about the Federal Reserve's policy loosening

boosted equities. We will have to wait for more data until the

Fed's policy decision."

Wall Street stocks ended lower overnight as investors parsed

the U.S. interest rates outlook and looked ahead to AI chipmaker

Nvidia's ( NVDA ) quarterly earnings this week.

The yen rose to as high as 146.99 to the dollar

earlier in the session after Trump took the unprecedented action

of removing Federal Reserve Governor Lisa Cook from her position

on the Fed's board of directors.

A stronger yen typically weighs on exporters' shares by

reducing the value of overseas earnings when converted back into

Japanese currency.

Toyota Motor ( TM ) and Honda Motor ( HMC ) slipped 1.41%

and 1.71%, respectively.

Uniqlo brand owner Fast Retailing ( FRCOF ) lost 1.44% and

technology investor SoftBank Group fell 0.91%.

Chip-related heavyweights Advantest ( ADTTF ) and Tokyo

Electron ( TOELF ) gave up early losses to end 0.23% and 0.1%

higher, respectively.

Investors, who were late on catching up with the Nikkei's

latest rally, seemed to have been buying stocks on dips, which

is limiting the declines, Yasuda said.

All but one of the Tokyo Stock Exchange's 33 industry

sub-indexes fell, with the drugmakers losing 2.42% to

become the worst performer.