TOKYO, May 17 (Reuters) - Japan's Nikkei share average

retreated on Friday, tracking Wall Street's weak finish

overnight, with sentiment also weighed down by uncertainties

about the Bank of Japan's policy path.

The Nikkei was down 0.36% to 38,782.08 by the midday

break after three straight sessions of gains. It has gained

1.45% so far in the week.

The index recouped some losses after the BOJ maintained the

amount for its regular bond-buying operation.

The central bank on Monday abruptly reduced the amount for

bonds with 5-10 years left to maturity, raising speculations

that it would continue its hawkish move.

"The market eyed the BOJ operation today because that was

part of the gauge for its policy path," said Yugo Tsuboi, chief

strategist at Daiwa Securities.

The broader Topix recovered from early losses to

rise 0.19% to 2,742.66, as investors bought the dip.

"Investors continue to scoop up cheap stocks as they see the

market rising further towards the end of this year," said Jun

Morita, general manager of the research department at Chibagin

Asset Management.

On Thursday, U.S. stocks closed lower after the Dow

reached an intraday high of 40,000 for the first time, as

investors continued to recalibrate their rate-cut expectations

following data showing a slowdown in inflation. The Philadelphia

SE Semiconductor Index lost 0.55%.

In Japan, chip-related shares fell on Friday, with Tokyo

Electron ( TOELF ) losing 2.01% to become the biggest drag on the

Nikkei. Silicon-wafter maker Shin-Etsu Chemical ( SHECF ) fell

2.02%.

Toyota Motor ( TM ) rose 1.4% to become the biggest boost

for the Topix. Mitsubishi UFJ Financial Group ( MUFG ) and

Sumitomo Mitsui Financial Group ( SMFG ) gained 2.17% and 2.89%,

respectively.

The banking sector rose 1.56% to become the top

performer among the Tokyo Stock Exchange's 33 industry

sub-indexes.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)