(Updates prices at close)

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

ended higher on Friday, driven by chip-related heavyweights, and

posted a record fiscal-year gain in terms of points amid heavy

foreign buying.

The index hit successive record highs this month, after

breaking levels on Feb. 22 last seen in 1989 during the

country's bubble economy.

The rally was supported by foreign buying on a weaker yen

and expectation that the Bank of Japan will stick with loose

monetary policy.

The index rallied 12,328 points in the fiscal year ending on

Friday, marking its biggest gain on an absolute basis. It rose

44% in the year, the most since the financial year ended March

2021.

On Friday, the Nikkei ended up 0.5% at 40,369.44,

recouping some of the previous session's losses.

"Investors remain cautious over a possible intervention in

the currency market but overall they take the weak yen as a

positive factor for domestic stocks," said Fumio Matsumoto,

chief strategist at Okasan Securities.

The yen fell to a 34-year low against the dollar this week,

prompting local authorities to hold an emergency meeting, a sign

Tokyo is moving closer to intervening in the market.

The Japanese yen was last flat at 151.40 per dollar.

Chip-related Tokyo Electron ( TOELF ) and Advantest ( ADTTF )

rose 0.79% and 1.85%, respectively.

The property sector jumped 1.96%, adding 16% this

month, the most among sectors. The sector has been underpinned

by a government survey released this week that showed land

prices in the country rose at the fastest pace in 33 years in

2023.

Optimism that the Bank of Japan will not raise interest

rates rapidly supports their stock prices, Okasan Securities

Matsumoto said.

The broader Topix rose 0.61% to 2,768.62 on Friday.

(Reporting by Junko Fujita, additional reporting by Noriyuki

Hirata; Editing by Mrigank Dhaniwala and Subhranshu Sahu)