TOKYO, Oct 21 (Reuters) - Japan's Nikkei share average slid below the key 27,000 mark on Friday, tracking overnight Wall Street losses amid worries that U.S. Federal Reserve's aggressive rate hikes could trigger recession.

However, strong gains by chip-related stocks amid a rise in the Philadelphia SE Semiconductor Index overnight and strong earnings from IBM capped losses.

The Nikkei slipped 0.21% to 26,951.59, by the midday break, but it was off earlier lows of 26,875.36. Of the index's 225 components, 171 declined, while 51 gained, with three remaining unchanged.

The broader Topix sagged 0.37% to 1,888.44.

Utilities made up the Nikkei's worst-performing sector, down 1.45%, followed by rate-sensitive real estate, which lost 1.07%.

Energy and technology were the only sectors to rise, the former up 0.25% amid continued strength in crude oil markets, and tech eking out a 0.1% gain.

Investors are now looking ahead to Japanese earnings next week, when more than 300 companies are scheduled to report results, and a Bank of Japan policy meeting next Friday.

Japan's central bank demonstrated its commitment to stimulus earlier in the day by announcing emergency bond buying to keep domestic yields in check.

"Ahead of those events, and right before the weekend, it's likely that a wait-and-see stance will take hold in the market," said Maki Sawada, a strategist at Nomura Securities.

The Nikkei is on track for a second straight weekly loss, easing 0.51%.

East Japan Railway was the biggest percentage loser on the Nikkei on Friday, with a 2.58% drop, in line with its peers.

Uniqlo store owner Fast Retailing was the biggest points decliner, shedding 18.5 index points and falling 0.64%.

At the other end, chipmaking equipment giant Tokyo Electron was the biggest advancer in both percentage and point terms, contributing 60 points with a 4.8% rally. Peer Advantest jumped 2.43%. (Reporting by Kevin Buckland; Editing by Rashmi Aich)