TOKYO, April 17 (Reuters) - Japan's Nikkei share average

retreated on Friday from a record high scaled the day before, as

investors sold technology stocks on caution over the index's

rapid gains.

The Nikkei fell 0.9% to 59,000.21 by 0157 GMT after

gaining 5.2% in the last three sessions. It has risen 3.6% so

far in the week. The broader Topix fell 1.05% to

3,774.48 on Friday, but was up about 1% for the week.

The market turned cautious about the Nikkei's sharp gains

and sold chip-related stocks to book profits, said Shuji Hosoi,

a senior strategist at Daiwa Securities.

Overnight, the S&P 500 and Nasdaq rose to

record closing levels for a second straight session. The U.S.

chip index rose to a record high, surging over 30% from

its recent low on March 30.

In Japan, chip-making equipment maker Tokyo Electron ( TOELF )

fell 3% to drag the Nikkei lower the most. Artificial

intelligence technology investor SoftBank Group lost

3.19%.

High-flying memory maker Kioxia ( KXHCF ) lost 4.22% and

fibre optic cable maker Fujikura ( FKURF ) lost 0.91%.

Air-conditioning maker Daikin Industries ( DKILF ) fell 2.58%

after surging 9% in the previous session following a report that

U.S.-based activist investor Elliott Management pressured the

company to buy back over $6 billion in shares over the next few

years.

TDK rose 2.26%. Chip-testing equipment maker

Advantest ( ADTTF ) gained 1.28%.

Of the 1,600 stocks trading on the Tokyo Stock Exchange's

prime market, 32% rose, 64% fell and 3% traded flat.