(Updates at 0600 GMT)

TOKYO, Aug 30 (Reuters) - Japan's Nikkei share average

ended higher on Friday, with technology stocks leading the

gains, as traders tracked a record closing high at Dow overnight

following robust U.S. economic data.

The Nikkei rose 0.74% to close at 38,647.75, and

ended the week flat. For the month, the benchmark index lost

more than 1%.

The broader Topix gained 0.73% to 2,712.63 and

posted a 0.3% weekly gain. For the month, the index lost nearly

3% in its biggest decline since October.

"The Dow's strong finish lifted domestic equities.

Chip-related stocks rose despite a decline of the Nasdaq, which

means Nvidia ( NVDA ) is no longer a market-moving cue," said Naoki

Fujiwara, senior general manager at Shinkin Asset Management.

The Dow posted a record-high close on Thursday in mixed

trading, while artificial intelligence chipmaker Nvidia ( NVDA )

dropped after its largely in line forecast failed to impress

investors. The Nasdaq slipped 0.23%.

Nvidia's ( NVDA ) performance has been key for the Nikkei as most of

its heavyweights are technology stocks.

The U.S. economy grew faster than initial estimates due to

strong consumer spending, the Commerce Department reported,

supporting expectations the U.S. is likely to avoid a recession.

Japanese chip-testing equipment maker Advantest ( ADTTF )

jumped 3.7% to give the biggest boost to the Nikkei. Chip-making

equipment maker Tokyo Electron ( TOELF ) rose 0.3%. Technology

start-up investor SoftBank Group gained 3.2%.

Medical equipment maker Terumo 4543.T> fell 2.9% to weigh on

the Nikkei the most, after news that its shareholders plan to

sell 73.2 billion yen ($505.56 million) worth of shares to

overseas investors.

Home interior goods retailer Nitori Holdings ( NCLTF ), which

relies on imports for most materials, fell 2.8% after the yen

weakened on Thursday.

Nitori ( NCLTF ) shares rose 22% this month, buoyed by a stronger yen.

Of the 225 Nikkei components, 155 stocks rose and 67 fell,

with three ending flat.

($1 = 144.7900 yen)