TOKYO, Nov 29 (Reuters) - Japan's Nikkei share average

fell on Friday as the yen strengthened on growing expectations

for an interest rate hike following hotter-than-expected

inflation data.

The Nikkei declined 0.4% to 38,193.01 by the midday

break and was on track for a third consecutive week of losses.

The broader Topix was down 0.3% at 2,680.05.

The dollar/yen broke below 150 for the first time in over a

month on growing bets that the Bank of Japan (BOJ) will hike

rates again next month.

Investors now see a 60% chance the BOJ could hike rates

again in December.

This weighed on exporter shares, with automaker Toyota Motor ( TM )

and tech and entertainment conglomerate Sony Group ( SONY )

down about 2% and 0.7%, respectively.

Meanwhile, banks and insurance shares were boosted by

prospects of the rate hike, sending Dai-ichi Life Holdings ( DCNSF )

up 2.5% and Chiba Bank ( CHBAF ) adding 2.7% to become

the biggest percentage gainer on the Nikkei.

Amid sluggish trade due to the U.S. Thanksgiving holiday on

Thursday, investors also booked profit on domestic heavyweight

stocks.

Chip-making equipment giant Tokyo Electron ( TOELF ) slipped

1.2%, while robot maker Fanuc ( FANUF ) was down 2.7%. Uniqlo

parent firm Fast Retailing ( FRCOF ) edged down 0.2%.

The Nikkei was poised to mark its worst monthly performance

since April, as the market struggled amid geopolitical

uncertainties and the U.S. presidential election.

Investors have also been weighing concerns about U.S.

President-elect Donald Trump's tariff pledges.

In coming months, "markets will likely need to become

accustomed to higher (yen) interest rates and U.S. trade

tariffs," said Neil Newman, head of strategy at Astris Advisory.

The median forecast in a Reuters poll for the Nikkei saw tepid

growth by mid-2025 as the market navigates near-term

uncertainties, before edging up to new highs.

The Nikkei will likely continue trading in a range next

week, with more potential comments from Trump among items in

focus next week, said Kazuo Kamitani, an equities strategist at

Nomura Securities.

(Reporting by Brigid Riley; Editing by Varun H K)