(Updated with closing levels)

By Brigid Riley

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

dipped on Friday, as heavyweight technology shares tracked their

U.S. peers down, while traders continued to position themselves

carefully ahead of the Bank of Japan's (BOJ) meeting next week.

Although the benchmark index snapped a string of losses in

the previous session, the Nikkei was unable to keep up

the momentum, closing 0.26% down at 38,707.64. It lost 2.5% this

week, its largest weekly drop since early December.

The declines come as tech-related shares, which helped to

lift the index above 40,000 points earlier this month, followed

U.S. chipmaker Nvidia ( NVDA ) lower as investors continued to

lock in profits. The U.S. index of semiconductors dropped

1.8% overnight.

Japan's chip-testing equipment maker Advantest ( ADTTF ),

which counts Nvidia ( NVDA ) among its customers, fell 1.4%, while

chip-making equipment giant Tokyo Electron ( TOELF ) declined

4.9%, pulling the overall index down.

The two index heavyweights were also among some of the

worst performers for the week, each losing over 7%.

If tech shares continue to struggle, "it might take some

time before the Nikkei reaches 40,000 again," T&D Asset

Management Chief Strategist Hiroshi Namioka said.

Meanwhile, growing speculation that Japan's central bank

could end its negative interest rate policy at its meeting on

March 18-19 weighed on the Nikkei index.

Focus was on the preliminary results of spring wage

negotiations due later on Friday, which will play a crucial role

when the BOJ makes its decision.

Losses in the Nikkei were limited by strength in the energy

sector, with energy explorers up 3.5%, while oil and

coal production firms gained 2.7%.

Utility firms weren't far behind with a 2.5%

gain, with Tokyo Electric Power Holdings jumping 13%.

Non-tech heavyweights like Uniqlo parent firm Fast Retailing ( FRCOF )

, up 0.3%, and pharmaceutical manufacturer Daiichi

Sankyo ( DSKYF ) also gave support.

The broader Topix finished up 0.35% at 2670.80.

(Reporting by Brigid Riley; Editing by Sherry Jacob-Phillips

and Mrigank Dhaniwala)