(Update with closing prices)

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

closed higher on Wednesday, led by technology stocks, but the

gains were capped due to persistent worries about the U.S.

tariff policy.

The Nikkei rose 0.42% to close at 38,963.7 after

briefly logging marginal losses. The benchmark, however, gained

as much as 0.78% earlier in the session.

The broader Topix reversed losses to end flat at

2,733.33.

"Although Japan is not yet a direct target of the tariff

policy of the U.S., whenever we hear about anything new about

this subject, the market becomes nervous," said Shuutarou

Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

"The auto sector is the most sensitive to the tariff

issues."

The U.S. President on Monday raised tariffs on steel and

aluminum imports to 25% from the previous 10%, eliminated

country exceptions as well as product-specific exclusions, and

promised to announce global reciprocal tariffs within days.

Overnight, the Nasdaq declined, but the Dow Jones

Industrial and S&P 500 climbed.

Japan's stock market was closed on Tuesday for a public

holiday.

Among stocks that lifted the benchmark Nikkei, chip-testing

equipment maker Advantest ( ADTTF ) jumped 3.41% and technology

investor SoftBank Group gained 3.79%.

Medical services platform operator M3 surged 19.27%

to an exchange-allowed limit and was the top percentage gainer

on the Nikkei.

Cable makers, a gauge for data centre investments, rose,

with Fujikura ( FKURF ) soaring 10.35%. Peer Furukawa Electric ( FUWAF )

pared some of its early gains to end 2.95% higher.

The auto sector slipped 0.91%, with Toyota Motor ( TM )

falling 0.91% and Honda Motor ( HMC ) shedding 1.34%.

Nissan Motor ( NSANF ) slumped 5.88%.

Of the 225 Nikkei components, 96 stocks rose and 127 fell,

while two traded flat.