(Updates for market close)

By Brigid Riley

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

fell on Friday as the yen strengthened on growing expectations

of an interest rate hike by the Bank of Japan (BOJ) after

hotter-than-expected inflation data.

The Nikkei closed 0.4% lower at 38,208.03. It was

down 0.2% on the week, marking its third consecutive week of

losses.

The broader Topix finished down 0.2% at 2,680.71.

The U.S. dollar/yen pair broke below 150 for the first time

in over a month on growing bets that the BOJ will hike rates

again next month.

Investors now see a 60% chance the BOJ would hike rates in

December.

This weighed on exporter shares, with automaker Toyota Motor ( TM )

and tech and entertainment conglomerate Sony Group ( SONY )

sliding 2.1% and 1.7%, respectively.

Nissan Motor ( NSANF ) was the biggest percentage loser on

the Nikkei, down 4%.

Meanwhile, banks and insurance stocks were boosted by

prospects of the rate hike, sending Dai-ichi Life Holdings ( DCNSF )

soaring 3.5% and Chiba Bank ( CHBAF ) rallying 4.2% to

land among the Nikkei's top percentage gainers.

The benchmark posted a 2.2% decline in November, its worst

monthly performance since April, as the market struggled amid

geopolitical uncertainties and the U.S. presidential election.

Investors have been weighing concerns around U.S.

President-elect Donald Trump's tariff pledges.

In the coming months, "markets will likely need to become

accustomed to higher (yen) interest rates and U.S. trade

tariffs," said Neil Newman, head of strategy at Astris Advisory.

The median forecast in a Reuters poll for the Nikkei saw

tepid growth by mid-2025 as the market navigates near-term

uncertainties, before scaling new highs.

The Nikkei will likely continue trading in a range next

week, with more potential comments from Trump among items in

focus next week, said Kazuo Kamitani, an equities strategist at

Nomura Securities.

Among other major shares, chip-making equipment maker Tokyo

Electron ( TOELF ) dipped 1.8%, while AI-focused startup investor

SoftBank Group lost 1.2%.

Soy sauce maker Kikkoman ( KIKOF ) shed 3.1%.