(Updates at 0130 GMT)

TOKYO, Sept 4 (Reuters) - Japan's Nikkei share average

slipped to a three-week low on Wednesday, with chip-related

stocks leading the declines, as the market tracked Wall Street's

biggest drop since early August.

As of 0134 GMT, the Nikkei was down 3.3% at

37,393.48. Earlier in the session, the benchmark index fell as

much as 4% to hit its lowest level since Aug. 15.

The broader Topix was down 2.76% at 2,657.81.

"Concerns over U.S. economy started growing again. The

market will remain cautious until they confirm the outcome of

U.S. non-farm payrolls data due on Friday," said Shoichi

Arisawa, general manager of the investment research department

at IwaiCosmo Securities.

U.S. stocks slumped on Tuesday, at the start of one of the

market's historically worst months, ahead of data likely to

influence how much the Federal Reserve will lower interest

rates.

The benchmark S&P 500 index, Nasdaq Composite Index

and the Dow Jones Industrial Average recorded

their biggest daily percentage declines since early August.

In Japan, chip-related giant Tokyo Electron ( TOELF ) fell

6.54%, tracking Nvidia's ( NVDA ) 10% drop. Peer Advantest ( ADTTF )

fell 7%. Chipmaker Renesas Electronics fell

8.5% to become the biggest percentage loser in the Nikkei.

Bucking the trend, shares of Nitori Holdings ( NCLTF ),

which imports most materials for furniture and home interior

goods, rose 2.75% to support the Nikkei as the yen strengthened.

Fuji Soft jumped 7% after U.S. buyout fund Bain

Capital said it would make a counter-offer to buy the software

developer that would exceed a rival offer from equity fund KKR

.

All the 33 industry sub-indexes on the Tokyo Stock

Exchange fell, with energy explorers falling 5.5% to

become the worst performers.

Of 225 components in the Nikkei, 212 stocks fell, while 12

traded higher and one was flat.