(Update at 0630 GMT)

TOKYO, Nov 7 (Reuters) - Japan's Nikkei share average

erased its early rise to end lower on Thursday, as investors

booked profits following the sharp gains in the previous

session.

The Nikkei fell 0.25% to close at 39,381.41, after

rising 2.6% on Wednesday to a three-week closing high.

The benchmark rose as much as 1% earlier in the session,

tracking Wall Street's record close overnight after Republican

Donald Trump won the 2024 U.S. presidential election.

Trump's victory unleashed a massive rally in the dollar,

drove stocks to record highs and punished bond prices.

"Nikkei's reversal indicated that the sharp gains in the

previous session were led by short-term investors who bet on a

rally on Trump trades," said Takehiko Masuzawa, trading head at

Phillip Securities Japan.

"They quickly sold stocks to book profits."

Uniqlo-brand owner Fast Retailing ( FRCOF ) fell 3.3% to

become the biggest drag on the Nikkei. Chip-making equipment

maker Tokyo Electron ( TOELF ) lost 1.73%.

Home interior goods maker and retailer Nitori Holdings ( NCLTF )

, which is sensitive to the yen's move, slipped 6.61%.

Railway operator Keio ( KTERF ) surged 17.67% and

construction firm Taisei ( TISCF ) jumped 13.34% after they

announced a share buyback.

The broader Topix ended 1% higher at 2,743.08, with

Toyota Motor ( TM ) up 2.89%.

Financials gained as bond yields rose, with Mitsubishi UFJ

Financial Group ( MUFG ) and Sumitomo Mitsui Financial Group ( SMFG )

up 3% and 2.59%, respectively.

Japan's 10-year government bond yield crossed

1% for the first time in over three months.

The U.S. dollar rose to 154.7 yen overnight,

its highest level sine July 31, before last tadingi down 0.53%

at 153.8.

Insurer Tokio Marine Holdings ( TKOMF ) gained 2.77%.

Of more than 1,600 stocks trading on the Tokyo Stock

Exchange's prime market, 76% rose and 21% fell, while 1% ended

flat.