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

sank on Tuesday, weighed down by woories of a stronger yen, as

investors braced for a super-sized interest rate cut from the

U.S. Federal Reserve this week.

The Nikkei dropped 1.5% to 36,023.51, as of 0127

GMT, as the market reopened after a national holiday on Monday,

when Japan's currency hit a more than one-year high against the

dollar.

The broader Topix index slumped 1.3%.

Technology giants were the biggest drag on the Nikkei, amid

broader losses in export-dependent companies. Chip-sector peers

declining on Wall Street overnight also weighed on sentiment.

Market odds of a 50-basis point (bp) Fed rate cut on

Wednesday have soared to 67%, versus 33% probability for a

quarter-point reduction.

In total, 120 bps of cuts are priced for the remaining three

Fed meetings this year, which means traders expect a second

outsized reduction either in November or December.

The Bank of Japan will announce its policy decision on

Friday. While no rate increase is expected this time, officials

have struck hawkish postures in recent communications, fuelling

bets for a faster pace of policy normalization.

"People are concerned about the potential for the yen to

continue to rise," with "both the Fed and BOJ playing their

parts in that," said Masayuki Kichikawa, chief macro strategist

at Sumitomo Mitsui DS Asset Management.

"People, including myself, are starting to get the

impression the BOJ is in a rush to raise interest rates,

irrespective of developments in the economy."

Of the Nikkei's 225 components, 167 fell and 58 rose.

Chip-making equipment giant Tokyo Electron ( TOELF ) dived

5.6%, becoming the biggest drag on the index. Chip-testing

machinery maker Advantest ( ADTTF ) sagged 4.5%, and artificial

intelligence-focused startup investor SoftBank Group

slid 3.7%. Sony Group ( SONY ) tumbled 4.5%.

Automakers were also standout underperformers, with Toyota

Motor ( TM ) dropping 2.9% and Nissan ( NSANF ) off 2.5%.

The yen soared as high as 139.58 per dollar on

Monday, crossing 140 for the first time since July of 2023. It

was last changing hands at 140.40, about 0.16% stronger than

Monday's closing level.