Japan's Nikkei index follows Wall Street higher; Kansai Electric surges

By Rocky Swift

TOKYO, Sept 10 (Reuters) - The Nikkei share index edged up on Wednesday, following gains on Wall Street, as traders gauged economic data for signals of central bank policy shifts in the United States and Japan.

Japan's Nikkei 225 Index .N225 climbed 0.3% to 43,604.15, bouncing back from a 0.4% slide in the previous session. The broader Topix .TOPX added 0.2%.

The three main share indexes in the U.S. hit new record highs overnight after a downward payrolls revision solidified expectations the Federal Reserve will soon cut interest rates to support the economy.

The path is less certain for the Bank of Japan as it eyes a possible rate increase this year to rein in inflation but also political uncertainty following the resignation of Prime Minister Shigeru Ishiba.

The Nikkei surged to a record intraday high of 44,185.73 on Tuesday before losing momentum and finishing in the red on the day.

"The immediate focus remains on the 44,000 level," said Nomura Securities strategist Chisa Matsuda. "As we approach that threshold, profit-taking is expected, potentially weighing on the upside."

On the plus side for Japan's economy, manufacturers' sentiment was its best in more than three years, the Reuters Tankan poll showed in a preview to the BOJ's own closely watched survey due on October 1.

There were 88 advancers on the Nikkei against 136 decliners. The largest gainer was Kansai Electric Power 9503.T, up 6% after a Financial Times report that activist investor Elliott Management has become one of the top three shareholders in the company.

Fujikura 5803.T, a supplier to Apple AAPL.O, was the No. 2 gainer with a 5.5% surge. Apple unveiled a slate of iPhones overnight, holding prices steady as it contends with the effects of tariffs.

The largest losers in the Nikkei were Mazda Motor 7261.T, down 2.9%, followed by Denso 6902.T, which slumped 2.8%."