(Updates with closing prices)

TOKYO, Feb 26 (Reuters) - Japan's Nikkei share average

fell to a four-month low on Wednesday amid worries about the

U.S. economic outlook and a stronger yen, but trimmed its losses

by the close as investors sought to buy back cheap stocks.

The Nikkei fell 0.25% to close at 38,142.37, after

falling to as low as 37,742.76, its lowest level since October

25, earlier.

The broader Topix dropped 0.3% to 2,716.4.

"Rising uncertainties hurt investor sentiment. The market was

concerned about the U.S. economy's outlook, the impact of U.S.

tariff plans and the direction of the yen," said Shoichi

Arisawa, general manager of the investment research department

at IwaiCosmo Securities.

Data on Tuesday showed U.S. consumer confidence deteriorated

at its sharpest pace in 3-1/2 years in February - the latest in

a string of surveys suggesting that businesses and consumers

were becoming increasingly rattled by the Trump administration's

policies.

The yen rose to its highest level since October

after the U.S. weak economic data.

A stronger Japanese currency tends to hurt shares of

exporters, as it decreases the value of overseas profits in yen

terms when firms repatriate them to Japan.

Chip-making equipment maker Tokyo Electron ( TOELF ) slipped

5.19% to drag the Nikkei the most. Technology investor SoftBank

Group lost 2.81%. Chip-testing equipment maker

Advantest ( ADTTF ) reversed early losses to end 0.78% higher.

Investors were cautious as they awaited Nvidia's ( NVDA )

quarterly earnings report later in the day, said Arisawa.

Mitsubishi Corp ( MSBHF ) lost 2.61% after surging 8.8% in the

previous session on comments from billionaire investor Warren

Buffett about the ownership of Japanese trading firms by his

Berkshire Hathaway ( BRK/A ).

Mitsui & Co ( MITSF ) lost 1.44%.

Banks fell 1.67% as yields on Japanese government

bonds slipped.

Mitsubishi UFJ Financial Group ( MUFG ) and Sumitomo Mitsui

Financial Group ( SMFG ) fell 2.07% and 1.11%, respectively.

Power transmission cable maker Furukawa Electric ( FUWAF ) jumped

4.36% to become the biggest gainer on the Nikkei.