TOKYO, April 19 (Reuters) - Japan's Nikkei share average snapped an eight-day rally on Wednesday dragged down by technology stocks, as investors took a pause in their buying spree.

The Nikkei index lost 0.24% to 28,590.40 by the midday break, after closing at its highest close since Aug. 22 on Tuesday.

The Nikkei's rally was driven by spillover from optimism over billionaire Warren Buffett eyeing increasing investments in the country.

The broader Topix was down 0.23% to 2,036.17.

"Investors still believe the Nikkei will rise further to cross the close in the previous session soon, but they wanted to take a pause today," said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute.

"To prove that, undervalued stocks continued to rise."

Banking sector rose 0.37% and the steel sector gained 0.35%.

The railway sector rose 0.64%, with Keisei Electric Railway rising advancing 2.41% to become the best performer on the Nikkei.

Electronics component maker TDK lost 2.24% to become the biggest drag for the Nikkei. Chip-making equipment maker Tokyo Electron slipped 0.5% and silicon wafer maker Shin-Etsu Chemical lost 0.95%.

Luxury toilet maker Lixil fell 2.42% after cutting its annual profit forecast for the second time.

Of the 1,834 stocks on the TSE's prime market, 70% of them fell, while 25% gained, with 6% being flat. (Reporting by Junko Fujita; Editing by Rashmi Aich)