(Updates with closing prices)

By Junko Fujita

TOKYO, July 11 (Reuters) - Japan's Nikkei share average

surrendered early gains to close lower on Friday as sharp

declines in Fast Retailing ( FRCOF ) led technology stocks to erase their

gains.

The Nikkei slipped 0.19% to 39,569.68 after rising as much

as 0.8% earlier in the session. The index fell 0.6% this week.

The broader Topix rose 0.39% to 2,823.24.

Fast Retailing ( FRCOF ) tanked 6.93% after the Uniqlo brand

owner said on Thursday higher U.S. tariffs would start impacting

its U.S. operations significantly from later this year and that

it plans to raise prices to mitigate the blow.

"Investors were worried about Fast Retailing's ( FRCOF ) outlook for

the next fiscal year. Still, gains of technology stocks

supported the index," said Kentaro Hayashi, senior strategist at

Daiwa Securities.

The market also sold stocks as soon as the Nikkei approached

the psychologically important level of 40,000, strategists said.

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

rose 0.71% and 0.9%, respectively, to track a 0.75% gain in the

Philadelphia SE Semiconductor Index overnight.

Air-conditioning maker Daikin Industries ( DKILF ) climbed

5.44%.

Banks advanced, aiding gains in the Topix, with Mitsubishi

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

rising 1.77% and 1.53%, respectively.

Toyota Motor ( TM ) added 1.39%.

Seven & I Holdings ( SVNDF ) rose 3.28% after the convenience

store operator posted a 9.7% jump in quarterly operating profit,

beating analysts' estimate.

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

Exchange's prime market, 70% rose, 25% fell and 3% traded flat.