Japan's Nikkei ends higher on tech gains, tariff worries limit gains

Update with closing prices

TOKYO, Feb 12 (Reuters) - Japan's Nikkei share average closed higher on Wednesday, led by technology stocks, but the gains were capped due to persistent worries about the U.S. tariff policy.

The Nikkei .N225 rose 0.42% to close at 38,963.7 after briefly logging marginal losses. The benchmark, however, gained as much as 0.78% earlier in the session.

The broader Topix .TOPX reversed losses to end flat at 2,733.33.

"Although Japan is not yet a direct target of the tariff policy of the U.S., whenever we hear about anything new about this subject, the market becomes nervous," said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

"The auto sector is the most sensitive to the tariff issues."

The U.S. President on Monday raised tariffs on steel and aluminum imports to 25% from the previous 10%, eliminated country exceptions as well as product-specific exclusions, and promised to announce global reciprocal tariffs within days.

Overnight, the Nasdaq .IXIC declined, but the Dow Jones Industrial .DJI and S&P 500 .SPX climbed.

Japan's stock market was closed on Tuesday for a public holiday.

Among stocks that lifted the benchmark Nikkei, chip-testing equipment maker Advantest 6857.T jumped 3.41% and technology investor SoftBank Group gained 3.79%.

Medical services platform operator M3 2413.T surged 19.27% to an exchange-allowed limit and was the top percentage gainer on the Nikkei.

Cable makers, a gauge for data centre investments, rose, with Fujikura 5803.T soaring 10.35%. Peer Furukawa Electric 5801.T pared some of its early gains to end 2.95% higher.

The auto sector .ITEQP.T. slipped 0.91%, with Toyota Motor 7203.T falling 0.91% and Honda Motor 7267.T shedding 1.34%. Nissan Motor 7201.T slumped 5.88%.

Of the 225 Nikkei components, 96 stocks rose and 127 fell, while two traded flat.