(Adds analyst's comments, updates with closing prices)

By Junko Fujita

TOKYO, Sept 12 (Reuters) - Japan's Nikkei share average

ended at a closing high for a second straight session on Friday,

as chip-related stocks tracked Wall Street's strong finish

overnight.

The Nikkei rose 0.89% to 44,768.12, after gaining as

much as 1.16% to a record intraday high of 44,888.02 earlier in

the session.

For the week, the index rose 4%, its biggest weekly gain

since mid-July.

The broader Topix edged up 0.4% to 3,160.49 and

advanced 1.77% for the week.

"There was a caution for overheating but investors see

potential for further gains as corporate outlook is seen as

strong, while return on equity is expected to rise as local

firms spend more money on shareholder returns," said Naoki

Fujiwara, senior general manager at Shinkin Asset Management.

Wall Street's main indexes notched record-high closes on

Thursday as U.S. inflation and jobless data fuelled expectations

that the Federal Reserve will cut interest rates this month.

In Japan, chip-making equipment maker Tokyo Electron ( TOELF )

jumped 5.5%, while chip-testing equipment maker

Advantest ( ADTTF ) gained 1.82%.

Technology investor SoftBank Group changed course

to end 1.82% higher.

The Nikkei's latest rally was partly supported by active

buying of the Nikkei stock futures ahead of the fixing of

special quotation prices, said Seiichi Suzuki, chief equity

market analyst at Tokai Tokyo Research Institute.

The Nikkei narrowed gains during the session as the buying

of futures slowed after the special quotation, used to set

values on index options and futures, settled soon after the

opening.

The closely watched settlement price, known in Japan as the

special quotation, or SQ, is calculated from the opening prices

of the 225 shares in the Nikkei share average on the second

Friday of the month.