(Updates with closing prices)

TOKYO, Jan 15 (Reuters) - Japan's Nikkei share average

gave up early gains to end lower on Wednesday, dragged down by

chip-related stocks, while uncertainties about the Bank of

Japan's policy outlook weighed on sentiment.

The Nikkei slipped 0.08% to 38,444.58, reversing the

index's as much as 0.78% gain earlier in the session. The

benchmark extended losses to the fifth straight session.

"The chip-related stocks were weak, which is why the Nikkei

ended lower. The market momentum was not that bad, with the

Topix closing higher," said Naoki Fujiwara, senior fund manager

at Shinkin Asset Management.

The broader Topix rose 0.31% to 2,690.81.

Advantest ( ADTTF ) lost 3.45% to drag the Nikkei the most.

The chip-testing equipment maker, a supplier to Nvidia ( NVDA ),

have slid 12% so far this week amid news that the U.S.

government would further curb artificial intelligence chip and

technology exports.

Chip-making equipment maker Tokyo Electron ( TOELF ) fell

1.4%.

Uncertainties about the BOJ's rate policy weighed on

investor sentiment, Fujiwara said.

The BOJ will raise interest rates and adjust the degree of

monetary support if improvements in the economy and price

conditions continue, Governor Kazuo Ueda said.

Financials rose on the growing hopes of a rate hike, with

Mitsubishi UFJ Financial Group ( MUFG ) and Sumitomo Mitsui

Financial Group ( SMFG ) gaining 1.77% and 2.4%, respectively.

The banking index climbed 2.24% to become the top

performer among the Tokyo Stock Exchange's 33 industry

sub-indexes.

Fast Retailing ( FRCOF ), which operates Uniqlo clothing

stores, climbed 1.3% to lend the biggest support to the Nikkei.

Overnight, the S&P 500 advanced and U.S. Treasury yields

fell after data showed producer prices increased modestly last

month.

"Rising U.S. yields hurt the Japanese stock market. But if

excessive caution for inflation and a possible rate hike in the

U.S. eases, the market will regain momentum," said Shuutarou

Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.