(Updates with closing prices)

TOKYO, March 13 (Reuters) -

Japan's Nikkei share average reversed course to end lower on

Thursday, pressured by exporters, as the yen strengthened after

comments from Bank of Japan chief bolstered rate hike

expectations.

The Nikkei closed 0.08% lower at 36,790.03, after

rising as much as 1.4% earlier in the session to track Wall

Street's overnight higher.

The broader Topix narrowed its gains, ending up

0.13% at 2,698.36.

BOJ Governor Kazuo Ueda said on Thursday he expects

consumption to improve, as the rise in import costs moderates

and wage growth strengthens.

The comments drove bets for the BOJ's early interest rate

hike, pushing the Japanese government bond yields and the yen

higher.

Wages are seen as key for the BOJ's policy path. Many of

Japan's biggest companies have met union demands for substantial

wage hikes for a third consecutive year, seeking to help workers

cope with inflation and retain staff amid labour shortages.

"There was not much new in what Ueda said today but the

market was sensitive to his comments at a time when the BOJ is

trying to raise rates and other nations are cutting rates," said

Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence

Laboratory.

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.

Automakers extended early losses, with Toyota Motor ( TM )

losing 1.54% and Honda Motor ( HMC ) down 1.21%. Nissan Motor

slipped 3.92%.

The auto sector fell 1.22% to become the worst

performer among the Tokyo Stock Exchange's 33 industry

sub-indexes.

Chip-testing equipment maker Advantest ( ADTTF ) narrowed

gains to end 3.67% higher. Chip-making equipment manufacturer

Tokyo Electron ( TOELF ) cut its gains to end 0.07% lower.

Of the 225 Nikkei companies, 111 stocks rose and 112 fell,

with two trading flat.