(Adds comments, details and updates stock prices)

By Junko Fujita

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

closed 2.5% lower on Wednesday, as high-flying technology stocks

lost ground following sharp overnight declines on Wall Street.

The Nikkei closed the session lower at 50,212.27.

Earlier in the session, the index fell as much as 4.65% to

49,073.58, its lowest point since October 24.

The broader Topix ended 1.26% lower at 3,268.29.

"The Nikkei's declines earlier in the day were too much, but

this happens after the index rises sharply. And it was proven

that investors would want to pick up stocks once the Nikkei fell

below the 50,000," said Hiroyuki Ueno, chief strategist at

Sumitomo Mitsui Trust Asset Management.

In October, the Nikkei crossed the crucial 50,000 mark

for the first time and climbed 16.64%, its biggest monthly gain

in 35 years, as technology shares rallied on expectations that

U.S. artificial intelligence-related firms such as chipmaker

Nvidia ( NVDA ) would continue to grow.

Sentiment was also buoyed by expectations of substantial

government spending to spur economic growth after Sanae Takaichi

became Japan's new prime minister last month.

"The index will probably see another sharp decline in

the future, but will recover from the losses and keep rising

slowly," Ueno said.

The Nikkei tracked U.S. stocks' sharp losses overnight,

triggered by big banks' warning that equity markets could be

headed for a drawdown, reflecting mounting concerns over

stretched valuations.

Technology investor SoftBank Group tumbled 10%,

chip-related Advantest ( ADTTF ) and Tokyo Electron ( TOELF ) lost

5.95% and 4%, respectively. Together, the three companies

accounted for 75% of the Nikkei's 1,284-point loss on Wednesday.

Shares of Nintendo ( NTDOF ) jumped 6.22% after the game

maker hiked its annual sales forecast for the Switch 2 gaming

device.

Uniqlo brand owner Fast Retailing ( FRCOF ) climbed 2% and

furniture and home goods retailer Nitori Holdings ( NCLTF ) rose

2.3%.

Of more than 1,600 stocks trading on the Tokyo Stock

Exchange's prime market, 26% rose, 70% fell and 2% traded flat.