Japan's Nikkei tracks US peers higher, climbs nearly 1%

TOKYO, March 13 (Reuters) - Japan's Nikkei share average rose nearly 1% on Thursday, as gains of U.S. technology stocks lifted sentiment, prompting investors to scoop up heavyweight chip-related shares.

The Nikkei .N225 was up 0.96% at 37,173.82 by the midday break, while the broader Topix .TOPX rose 0.88% to 2,718.63.

U.S. stocks advanced on Wednesday as cooler-than-expected inflation data helped stanch a sharp selloff, while the escalation of U.S. President Donald Trump's chaotic, multi-front tariff war kept gains in check. Technology shares led the gainers among the 11 major sectors in the S&P 500 .SPX. .N

"The market was relieved to see gains of U.S. technology stocks," said Kentaro Hayashi, senior strategist at Daiwa Securities.

In Japan, chip-testing equipment maker Advantest 6857.T surged 5.6% on Thursday, providing the largest boost to the Nikkei. Meanwhile, chip-making equipment manufacturer Tokyo Electron 8035.T saw a 1.59% gain.

SoftBank Group 9984.T rose 1.41%.

The U.S. inflation data released overnight also relieved investors, Hayashi said.

"The data suggested the U.S. could cut rates if the economy weakens," he said.

U.S. consumer prices cooled more than analysts expected, reassuring that inflation is headed in the right direction and keeping hopes alive that the U.S. Federal Reserve could cut its key interest rate this year.

Automakers fell, with Toyota Motor 7203.T slipping 0.33% and Honda Motor 7267.T down 0.07%.

All but three of the Tokyo Stock Exchange's 33 industry sub-indexes rose. The auto sector .ITEQP.T fell 0.11% to become the worst performer.

Of the 225 Nikkei companies, 168 stocks rose and 54 fell, with three trading flat.