(Updates with closing prices)

By Kevin Buckland

TOKYO, Aug 23 (Reuters) - Japan's Nikkei share average

ended Friday with gains following a rollercoaster session as

traders reacted to shifts in tone over five hours of

parliamentary testimony from Bank of Japan Governor Kazuo Ueda.

The Nikkei finished up 0.4% at 38,364.27 after

starting the day higher and then slumping into the lunch break,

only to rally on the restart.

The broader Topix gained 0.5%.

"In the morning, Ueda was quite hawkish," signalling a

readiness to raise interest rates again if inflation continues

to develop as expected, said Masahiro Ichikawa, chief market

strategist at Sumitomo Mitsui DS Asset Management.

"But in the afternoon, he was a little more dovish and

considerate of markets," he added, pointing to Ueda's comment

that there's no difference in thinking with Deputy Governor

Shinichi Uchida, who said earlier this month that the central

bank wouldn't tighten policy when markets are volatile.

The yen also swung on Ueda's comments, last trading about

0.5% stronger at 145.65 per dollar, clawing back most

of Thursday's declines.

Traders now need to be wary of Federal Reserve Chair Jerome

Powell's keynote speech at the U.S. central bank's annual

Jackson Hole symposium later in the day.

Of the Nikkei's 225 components, 175 stocks gained versus 50

that fell.

Technology was the only Nikkei sector to decline, as chip

shares tracked an overnight sell-off of Wall Street peers.

Chip-making machinery giant Tokyo Electron ( TOELF ) lost

2.52% to be the biggest decliner in index-point terms.

Chip-testing equipment manufacturer Advantest ( ADTTF )

dropped 3.41% to be the biggest percentage decliner. Peer

Lasertec ( LSRCF ) slumped 3.09%.

At the other end, healthcare continued its strong recent

run, with Sumitomo Pharma ( DNPUF ) advancing 3.53%.

Electronics maker Sharp Corp ( SHCAF ) was the Nikkei's

biggest percentage gainer, jumping nearly 7% following a report

that SoftBank Corp ( SFTBF ) was in talks to make a 100 billion

yen ($686.72 million) investment. SoftBank shares rose 0.48%.

($1 = 145.6200 yen)

(Reporting by Kevin Buckland; Editing by Subhranshu Sahu and

Mrigank Dhaniwala)