(Updates at 0600GMT)

TOKYO, July 3 (Reuters) - Japan's Nikkei share average

rose for a fourth consecutive day on Wednesday, as heavyweight

technology stocks tracked overnight gains in U.S. megacap growth

stocks.

The Nikkei gained 1.26% to close at 40,580.76.

The broader Topix also rose for a fourth straight

day, closing up 0.54% at 2,872.18.

Wall Street's main stock indexes closed higher on Tuesday,

boosted by gains in Tesla and megacap growth stocks,

but volumes were thin ahead of the July 4 holiday and the

closely watched release of June nonfarm payrolls on Friday.

"Investors rotated their targets today. They sold

outperforming shares to take profits and bought cheaper stocks,"

said Naoki Fujiwara, senior fund manager at Shinkin Asset

Management.

"The Nikkei tracked Wall Street, higher but also those who

were late in catching up to the recent rally bought Nikkei

futures, which lifted the main index," said Fujiwara.

Topix's growth stock index, which lags behind the

value share index for its weekly performance, jumped 0.93%,

while the value share index edged up 0.18%

Chip-making equipment maker Tokyo Electron ( TOELF ) rose

2.6% to provide the biggest boost to the Nikkei. Chip-testing

equipment maker Advantest ( ADTTF ) gained 2.38%.

Electronic components maker TDK jumped 5.24% and

silicon wafer maker Shin-Etsu Chemical ( SHECF ) climbed 2.22%.

Meanwhile, Hitachi slipped 1.58% to weigh on the

Topix the most. Insurer Tokio Marine Holdings ( TKOMF ) dropped

1.18%. Toyota Motor ( TM ) fell 0.24%.

Of the more than 1,600 stocks trading on the Tokyo Stock

Exchange's (TSE) prime market, 59% of the shares rose, while 37%

fell and 2% were unchanged.

The machinery sector rose 2.2% and was the top

performer among the TSE's 33 industry sub-indexes.

(Reporting by Junko Fujita; Editing by Sonia Cheema and Varun H

K)