TOKYO, Nov 1 (Reuters) - Japan's Nikkei share average

slipped 2% on Friday, tracking Wall Street's decline overnight,

while the yen's strength weighed on sentiment.

The Nikkei was down 2% at 38,287.99 as of 0006 GMT,

while the broader Topix fell 1.48% at 2,655.77.

All three U.S. stock indexes closed lower on Thursday after

Microsoft and Meta Platforms highlighted growing artificial

intelligence costs that could hit their earnings, curbing

enthusiasm for megacaps that have fueled the market rally this

year.

The dollar fell against the yen on Thursday, after the Bank

of Japan's less dovish remarks and U.S. data suggested upward

price pressures continue to ease.

A stronger yen tends to hurt exporter shares as it decreases

the value of overseas profits in yen terms when firms repatriate

them to Japan.

Chip-making equipment maker Tokyo Electron ( TOELF ) fell

3.42% and Uniqlo-brand owner Fast Retailing ( FRCOF ) slipped

1.45%.