Japan's Nikkei touches 4-month low on worries about US economic outlook

TOKYO, Feb 26 (Reuters) - Japan's Nikkei share average touched a four-month low on Wednesday as worries about the outlook of the U.S. economy and a stronger yen weighed on investor sentiment.

The Nikkei .N225 fell 1.11% to 37,814.04 by the midday break, after falling to as low as 37,742.76, its lowest level since Oct. 25.

The broader Topix .TOPX was down 1.06% to 2,695.74.

"Rising uncertainties hurt investor sentiment. The market was concerned about the U.S. economy outlook, the impact of U.S. tariff plans and the direction of the yen," said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.

"The Nikkei had been underpinned by robust earnings of domestic firms. But once the index fell below a psychological barrier of the 38,000 level, investors were prompted to sell more stocks."

The Nikkei fell below the 38,000 level for the first time since Dec. 2.

The yen JPY=EBS rose to its highest level since October as data showed U.S. consumer confidence deteriorated at its sharpest pace in 3-1/2 years in February.

In Japan, chip-making equipment maker Tokyo Electron 8035.T slipped 5.95% to drag the Nikkei the most. Technology investor SoftBank Group 9984.T lost 3%.

Investors were cautious as they awaited Nvidia's NVDA.O quarterly earnings report later in the day, said Arisawa.

Mitsubishi Corp 8058.T lost 1.99% after surging 8.8% in the previous session on the comments from billionaire investor Warren Buffett about the ownership of Japanese trading firms by his Berkshire Hathaway BRKa.N.

Mitsui & Co 8031.T lost 2%.

The bank sector .IBNKS.T fell 2.06% as yields on Japanese government bonds slipped.

Mitsubishi UFJ Financial Group 8306.T and Sumitomo Mitsui Financial Group 8316.T fell 2.58% and 1.58%, respectively.

Beer maker Sapporo Holdings 2501.T rose 2.9% to become the biggest percentage gainer on the Nikkei.