(Adds comments, updates stock prices)

By Junko Fujita

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

fell 4% on Wednesday and was on track for its worst session in

seven months, as high-flying technology stocks lost ground after

Wall Street's sharp declines overnight.

The Nikkei was down 4% at 49,446.53, as of 0149 GMT,

hitting its lowest point since October 24. It fell below the

psychologically important 50,000 level for the first time since

October 27. The broader Topix fell 2.78% to 3,218.22.

U.S. stocks closed sharply lower on Tuesday as big banks

warned that equity markets could be headed for a drawdown,

reflecting mounting concerns over stretched valuations.

In Japan, technology investor SoftBank Group fell

12.6%, while chip-testing equipment maker Advantest ( ADTTF )

lost 8.9%, dragging the Nikkei the most.

"The Nikkei's declines are in reaction to last month's sharp

gains. Money is not fleeing Japan's stock market," said Seiichi

Suzuki, chief equity market analyst at Tokai Tokyo Research

Institute.

The Nikkei rose 16.64% in October in its biggest monthly

gain in 35 years, as technology shares rallied on expectations

artificial intelligence-related U.S. firms such as chip maker

Nvidia ( NVDA ) would grow further.

Sentiment was also buoyed by expectation of large government

spending to boost economic growth as Sanae Takaichi became

Japan's new prime minister last month.

Investors are not dumping stocks as they pick up stocks with

strong outlook, said Tokai Tokyo's Suzuki.

Nintendo ( NTDOF ) jumped 5.87% on Wednesday after the game

maker hiked its annual sales forecast on Tuesday for the Switch

2 gaming device.

Uniqlo brand owner Fast Retailing ( FRCOF ) gained 2.1%.

Furniture and home goods retailer Nitori Holdings ( NCLTF ) rose

2.3%.

Optical fibre maker Fujikura ( FKURF ), which provides

materials for AI data centres, fell 9.3%.

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

sub-indexes fell, with the nonferrous metals sector losing 7.7%

to become the worst performer.