Japan's Nikkei rises as worries about US tariff impact recedes

TOKYO, March 6 (Reuters) - Japan's Nikkei share average rose on Thursday, tracking overnight Wall Street gains, as worries about the impact of U.S. President Donald Trump's tariff policy eased, while declines of chip-related stocks capped gains.

The Nikkei .N225 rose 0.82% to 37,726.02 by the midday break, while the broader Topix .TOPX jumped 1.18% to 2,750.27.

Wall Street's main indexes finished higher in choppy trading on Wednesday, as investors cheered the likely easing of trade tensions between the U.S. and its major trading partners. .N

Stocks turned positive after a report said Trump was considering a one-month delay for auto tariffs on Canada and Mexico. Equities extended gains after a White House announcement confirmed that Trump agreed to delay tariffs on some vehicles.

"Market players remain cautious about the U.S. tariff policy, but now they expect Trump would not execute anything that could hurt the global economy," said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

Uniqlo-brand owner Fast Retailing 9983.T rose 1.44% to give the biggest boost to the Nikkei. Technology investor SoftBank Group 9984.T rose 1.8% and game maker Sony Group 6758.T jumped 4.16%.

Heavy machinery makers surged after Goldman Sachs raised its rating and target price of Mitsubishi Heavy Industries 7011.T. Mitsubishi Heavy jumped 10% and peer Kawasaki Heavy Industries 7012.T surged 9.82%.

Chip-related shares fell and weighed on the Nikkei, with chip-making equipment maker Tokyo Electron 8035. and chip-testing equipment maker Advantest 6857.T losing 1.75% and 1.2%, respectively.

"The market now sees the growth of the global chip industry had peaked after they saw Nvidia's outlook last month," Yasuda said.

Makers of cables, a gauge for data centre investments, fell with Fukukawa Electric 5801.T and Fujikura 5803.T falling 2.53% and 1.51%, respectively.

Of more than 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 80% of stocks rose and 17% fell, with 2% trading flat.