(Updates stock prices)

TOKYO, March 14 (Reuters) - Japan's Nikkei share average

recouped early losses to end higher on Friday, underpinned by

gains in U.S. stock futures, as investors bought chip-related

stocks and other undervalued shares.

The Nikkei rose 0.72% to close at 37,053.1, after

falling as much as 0.5% earlier in the session. The index rose

0.45% for the week, snapping three consecutive weeks of losses.

"Investors bought back stocks as they wanted to recover

losses in the previous session," said Seiichi Suzuki, chief

equity market analyst at Tokai Tokyo Intelligence Laboratory.

On Thursday, the Nikkei gave up its 1.4% intraday gains to

end lower.

The broader Topix rose 0.65% to 2,715.85.

Chip-testing equipment maker Advantest ( ADTTF ) jumped 5.3%

and chip-making equipment maker Tokyo Electron ( TOELF ) rose

0.75%. Fujikura ( FKURF ), a cable maker and a gauge for data

centre investments, surged 8.05%.

Shares of Canon climbed 2.74% after the Japanese

camera maker launched plans to buy back up to 2.8% of its

shares.

The upside of the Nikkei has been limited as market players

are concerned about uncertainties about the U.S. economy, said

senior portfolio manager at GCI Asset Management.

"But losses are also limited as there is a demand from

institutional investors, such as pension funds, who want to buy

stocks to rebalance their portfolios at the end of Japan's

fiscal year," said Ikeda.

In addition to fears of the impact of President Donald

Trump's tariff threats, his comments about the U.S. recession in

a Fox News interview weighed on the sentiment of equity

investors, said Hiroyuki Ueno, chief strategist at Sumitomo

Mitsui Trust Asset Management.

"But I think the market could turn its course after April 2

when Trump has vowed to impose reciprocal tariffs on the U.S.

trading partners," Ueno said.

Of the 225 components of the Nikkei, 152 stocks rose and 72

fell, with one trading flat.