(Updates with closing prices)

By Junko Fujita

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

fell on Thursday, pulling back from a record high scaled in the

previous session on concerns over a potential shift in Bank of

Japan policy and a stronger yen.

The Nikkei ended 1.45% lower at 42,649.26, snapping

a six-session rally. The index crossed the key 43,000 level on

Wednesday for the first time.

Investors sold stocks to lock in profits on growing concerns

that the market is overheating, said Shuutarou Yasuda, a market

analyst at Tokai Tokyo Intelligence Laboratory.

The market also became cautious that the BOJ may raise

interest rates soon, after U.S. Treasury Secretary Scott

Bessent's comments, he said.

In an interview with Bloomberg Television, Bessent said the

BOJ is going to hike rates as it is "behind the curve" in

handling monetary policy.

The comments came as rising bets that the Federal Reserve

will resume rate cuts next month sent the dollar to a three-week

low.

A stronger yen typically weighs on exporter shares by

reducing the value of overseas earnings when converted back into

Japanese currency.

The broader Topix fell 1.1% to 3,057.95, also

snapping a six-session winning streak.

Shares of chip-testing equipment maker Advantest ( ADTTF )

lost 4.64% to become the biggest drag for the Nikkei.

Chip-making equipment maker Tokyo Electron ( TOELF ) fell 2.01%.

Heavy machinery maker Mitsubishi Heavy Industries ( MHVYF )

slipped 5.69%, weighing the most on the Topix.

Automakers fell, with Toyota Motor ( TM ) and Honda Motor ( HMC )

losing 2.43% and 1.25%, respectively.

Among gainers, technology investor SoftBank Group

rose 4.4%.

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

Exchange's prime market, 28% rose, 68% fell, and 3% closed flat.

(Reporting by Junko Fujita; Editing by Sumana Nandy and

Subhranshu Sahu)