TOKYO, April 25 (Reuters) - Japan's Nikkei share average

traded lower on Thursday after rising sharply in the previous

session, with technology stocks leading the losses.

The Nikkei fell 1.67% to 37,818.11 by the midday

break, set to snap a three-session rally.

The index rose 2.4% on Wednesday to reclaim the 38,000 level

in its biggest daily jump in more than a month.

The broader Topix was down 1.25% to 2,676.73.

"The market has been volatile lately because there are many

uncertainties that have changed investors' premises," said

Kentaro Hayashi, senior strategist at Daiwa Securities.

"Inflation in the U.S. is more persistent than expected,

which pushed U.S. yields higher, and geographical tensions in

the Middle East have lifted oil prices."

A Nikkei volatility index hit 27.82 on April 19, its

highest level since Oct. 3, and was last at 20.77.

Chip-related shares dragged the Nikkei lower, with Tokyo

Electron ( TOELF ) and Advantest ( ADTTF ) falling 3.22% and

2.04%, respectively. Shin-Etsu Chemical ( SHECF ) lost 2.22%.

Technology investor SoftBank Group fell 1.12%.

Toyota Motor ( TM ) fell 2.87% despite the yen's hitting a

34-year low.

Overnight, the yen fell below 155 to its weakest

against the dollar since June 1990, a level seen as authorities'

line in the sand that heightens the chance of currency

intervention.

The market is focusing on whether Bank of Japan Governor

Kazuo Ueda will make any hawkish comments on prospects of a

near-term interest rate hike at the end of its two-day policy

meeting on Friday.

Fanuc ( FANUF ) lost 2.51% after the robot maker's annual

profit forecast was below the market expectations.

Canon slumped 7.09% after the camera maker's annual

operating profit missed analysts' expectations.

Bucking the trend, Renesas Electronics ( RNECF ) rose 2.36%

after the chip-maker issued a positive outlook for chips used in

cars.

Of the 225 Nikkei components, 32 stocks rose, while 193

fell.