(Updates with closing levels)

By Brigid Riley

TOKYO, May 8 (Reuters) - Japan's Nikkei share average

fell more than 1% on Wednesday, slipping from multi-week highs

hit in the previous session as earnings releases drew the

starkest winners and losers, while investors awaited fresh clues

to determine the U.S. interest rate path.

The Nikkei closed 1.6% lower at 38,202.37, shedding

632.73 points to wipe out Tuesday's gains.

The broader Topix was down 1.45% at 2706.43.

The benchmark index rallied to a three-week high on Tuesday

as a downside surprise in U.S. job growth reassured markets that

rate cuts may still be on the Federal Reserve's cards this year.

However, U.S. stock markets meandered overnight due to a

lack of new clues to confirm the timing and size of potential

cuts, giving Japan's Nikkei little momentum to go on.

"The timing of U.S. interest rate cuts will greatly impact

Japanese stocks," said Masahiro Ichikawa, chief market

strategist at Sumitomo Mitsui DS Asset Management.

If U.S. inflation settles down and the chance of rate cuts

increases, Japanese equities will follow Wall Street higher, he

said.

"I think it's highly likely that the Nikkei will approach

39,000 or 40,000 again by the year-end."

The index rose to an all-time high of 41,087.75 earlier this

year before retreating sharply in April.

A drag in U.S. technology shares on Tuesday also generated

some headwinds for Japanese shares.

Chip-making equipment giant Tokyo Electron ( TOELF ) slipped

1.5%, while AI-focused startup investor SoftBank Group ( SFTBF )

fell 1.7%.

With little news on the policy front to drive the market on

Wednesday, corporate earnings and profit-taking dominated market

moves.

Shares of Nintendo ( NTDOF ) declined 5.4% after the gaming

company said it plans to make an announcement about the

successor to its Switch console, while Mitsubishi Heavy

Industries ( MHVYF ) slumped 7.3%.

Automaker Toyota Motor ( TM ) pared losses, declining

0.6%, after posting a record-breaking quarterly operating

profit.

Uniqlo parent firm Fast Retailing ( FRCOF ) slumped 2.3,

after news of increased domestic sales in April compared with

the previous year saw the share up 3.2% on Tuesday.