(Updates at 0600 GMT)

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

snapped a three-day winning streak to close lower on Tuesday as

a stronger yen and Wall Street's weaker finish overnight weighed

on sentiment.

The Nikkei fell 1% to close at 38,937.54, after

rising 1.8% on Monday. The index has jumped 4% over the last

three sessions.

"Japanese stocks retreated as overnight declines of Wall

Street prompted investors to book profits from their three-day

rally," said Naoki Fujiwara, senior general manager at Shinkin

Asset Management.

"Also, a stronger yen weighed on sentiment," he said.

Wall Street's three major indexes closed around 1% lower as

traders tamped down bets for Federal Reserve's easing on

interest rates and concerns over the Middle East conflict's

impact on oil prices.

The yen was a tad stronger at 148.07 per dollar,

having slumped to a seven-week low of 149.10 in the previous

session.

A stronger yen tends to dampen exporters' shares, as the

unit decreases the value of overseas profits in yen terms when

firms repatriate them to Japan.

The broader Topix dropped 1.47% to 2,699.15, with

Toyota Motor ( TM ) falling 2.93% to drag the index the most.

Shares of Sony Group ( SONY ) fell 2.43%.

Technology startup investor SoftBank Group slumped

nearly 2% to drag the Nikkei index the most. Uniqlo brand owner

Fast Retailing ( FRCOF ) slipped 0.61%.

All but three of the Tokyo Stock Exchange's 33 industry

sub-indexes fell, with the brokerage sector declining

3% to become the worst performer. The banking sector

lost 2.6%.

Of more than 1,600 stocks listed on the TSE's prime market,

84% fell, while 14% rose and 1% flat.