(Updates with levels as of 0600 GMT)

By Brigid Riley

TOKYO, Aug 21 (Reuters) - Japan's Nikkei share average

edged down on Wednesday as yen gains weighed on domestic stocks.

The Japanese currency strengthened back to the 145 levels

per dollar after falling as far as 147.34 the previous day,

although a halt in the yen's rise helped narrow equity losses in

the Asian afternoon.

Nikkei finished 0.3% lower at 37,951.8 after falling

1% in early trade, while the broader Topix fell 0.2% to

2,664.86.

Japanese equities have bounced between gains and losses this

week as the yen fluctuated.

A stronger yen tends to drag on exporter shares as it

decreases the value of overseas profits in yen terms when firms

repatriate them to Japan.

It was trading around 145.74 per dollar when the

market closed, after touching a high of 144.945.

"There are still structural themes supporting Japanese

equity markets, but yen risks keep us neutral in our tactical

view," said Charu Chanana, global market strategist and head of

FX strategy at Saxo.

A wide berth of shares traded in the red, with major

chip-related shares among them also weighing on the Nikkei

following declines in their U.S. peers.

Tokyo Electron ( TOELF ) fell 1.4%, while Advantest ( ADTTF )

and Shin-Etsu Chemical ( SHECF ) were both down about 2%.

Among other shares, Seven & I Holdings ( SVNDF ) was up 5.8%

after slumping on Tuesday as investors continued to weigh a

takeover proposal from Canada's Alimentation Couche-Tard ( ANCTF )

.

Cosmetic company Shiseido ( SSDOF ) slid about 6% to become

the biggest percentage loser.

Uniqlo parent firm and Nikkei heavyweight Fast Retailing ( FRCOF )

ticked down 0.5%.

Markets now await the release of preliminary benchmark

revisions to U.S. employment data for the 12 months through

March, due later on Wednesday.

A revision closer to 1 million fewer jobs created than

previously estimated could renew concerns about the U.S. labour

market and generate more market volatility, said Saxo's Chanana.