Japan's Nikkei rises after 4 days of losses as chip-related shares jump

By Junko Fujita

TOKYO, Oct 2 (Reuters) - Japan's Nikkei share average gained slightly on Thursday after four straight sessions of losses, as chip-related stocks tracked their U.S. peers higher.

The Nikkei .N225 rose 0.28% to 44,675.96 by the midday break after shedding 2.6% in the last four sessions, with some analysts expecting the recovery to be short-lived given the fall in the broader Topix.

Earlier in the day, the Nikkei rose as much as 1.3%. The Topix .TOPX fell 0.72% to 3,072.32.

"Retail investors refrain from buying stocks as they are waiting for the shares to fall further," said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.

"The Nikkei has risen too high. The decline in the Topix index is a real reflection of the market sentiment."

The Nikkei, which is heavily weighted by chip-related shares, hit a record high last month, helped by gains in chip-related shares. It has risen 12% so far this year, heading for a third straight annual gain.

Chip-making equipment maker Tokyo Electron 8035.T jumped 5.7% on Thursday after the U.S. Philadelphia chip index .SOX notched a record high overnight.

Chip-testing equipment maker Advantest 6857.T rose 2.11% and artificial intelligence technology investor SoftBank Group 9984.T jumped 5.13%.

"Investors who bet on U.S. technology stocks bought Japanese tech shares today," Kamada said.

Bank shares fell, with Mitsubishi UFJ Financial Group 8306.T down 1.64%. Mizuho Financial Group 8411.T and Sumitomo Mitsui Financial Group 8316.T lost 1.25% and 0.99%, respectively.

Auto shares fell, with Toyota Motor 7203.T and Honda Motor 7267.T losing 0.99% and 1.59%, respectively.

Of the more than 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 74% fell, 22% rose and 2% traded flat.