TOKYO, Sept 8 (Reuters) - Japan's Nikkei share average fell more than 1% on Friday, sending it to a first weekly loss in three, as the benchmark tracked Wall Street losses amid worries about tighter U.S. Federal Reserve policy and a Chinese iPhone ban.

Tech and industrial companies were among the biggest losers, with chip-making equipment giant Tokyo Electron dropping 3.83% to become the Nikkei's biggest drag, shaving off 85 index points.

Mobile game and ad company CyberAgent tumbled 6.83% to be the Nikkei's top percentage decliner.

The Nikkei slid 1.16% to 32,606.84, as of the close. That extended a 0.75% decline from Thursday when it also snapped an eight-day winning streak after touching a more than one-month peak of 33,322.45 early in the session.

For the week, the benchmark index slipped 0.32%.

The broader Topix sagged 1.02% on Friday, also falling for a second day after marking a 33-year peak early in Thursday's session.

For the week, however, the Topix managed to hold on to a 0.40% gain.

"We're heading into the weekend, and if you consider that until Wednesday the Nikkei had seen eight straight days of gains, this is an environment ripe for some position adjustments and profit-taking," said Maki Sawada, a strategist at Nomura Securities.

Of the Nikkei's 225 components, 200 fell, 24 rose and one was flat.

Among Nikkei industry groups, only utilities - a traditionally defensive sector - advanced.

Overnight, a decline in new U.S. jobless claims raised speculation that the Fed might continue with monetary tightening.

Meanwhile, Apple, its suppliers and peers with large China exposure dragged on Wall Street indexes as Beijing eyed broadening the iPhone ban to state firms and agencies. (Reporting by Kevin Buckland; Editing by Rashmi Aich and Sonia Cheema)