(Updates with levels as of 0230 GMT)

By Brigid Riley

TOKYO, Aug 21 (Reuters) - Japan's Nikkei share average

declined in morning trade on Wednesday, as yen gains overnight

weighed on domestic stocks and investors turned cautious ahead

of the release of revisions to U.S. employment data.

The Nikkei was down 0.7% at 37,805.35 as of the

midday break, while the broader Topix fell 0.6% to

2,655.29.

The declines ran opposite to the yen's movements, which was

last trading around 145.36 per dollar after falling as

far as 147.34 the previous day.

A stronger yen tends to drag on exporter shares as it

decreases the value of overseas profits in yen terms when firms

repatriate them to Japan.

Market players also await the release of preliminary

benchmark revisions to U.S. employment data for the 12 months

through March, due later on Wednesday.

Although recent economic data has eased fears of an imminent

U.S. recession, markets remain sensitive to labour-related data.

The upcoming revisions will be key on Wednesday, said Charu

Chanana, global market strategist and head of FX strategy at

Saxo.

"If the number drifts closer to 1 million (fewer jobs

created than previously estimated), that could spook volatility

in the market amid renewed concerns around the U.S. labour

market."

A weak jobs report at the start of August sparked market

stress over the risk of a hard landing for the world's largest

economy.

Federal Reserve Chair Jerome Powell will make remarks at the

Jackson Hole Economic Symposium on Friday, which market players

will scrutinise for confirmation that the Fed is on track for a

small rate cut in September.

Major chip-related shares were among those trading in the

red, following declines in their U.S. peers to weigh on the

Nikkei.

Tokyo Electron ( TOELF ) fell 1.5% and Advantest ( ADTTF ) was

down about 3%.

Among other shares, Seven & I Holdings ( SVNDF ) was up 3.3%

after slumping on Tuesday as investors continued to weigh a

takeover proposal from Canada's Alimentation Couche-Tard ( ANCTF )

.

Cosmetic company Shiseido ( SSDOF ) slid about 5% to become

the biggest percentage loser.