(Updates with closing prices)

By Junko Fujita

TOKYO, Aug 27 (Reuters) - Japan's Nikkei share average

rose on Wednesday, lifted by gains in Nvidia ( NVDA ) supplier Advantest ( ADTTF ),

while investors awaited the U.S. chipmaker's outlook due before

the Tokyo market opens on Thursday.

The tech-heavy Nikkei advanced 0.3% to close at

42,520.27. By contrast, the broader Topix eased 0.07% to

3,069.74.

"The market is focused on Nvidia's ( NVDA ) outlook. Its results will

probably beat market expectations, but the bar for Nvidia ( NVDA ) to

satisfy the market with its outlook is high," said Shoichi

Arisawa, general manager of the investment research department

at IwaiCosmo Securities.

"Any comments from the company could also become

market-moving cues."

Nvidia ( NVDA ) is set to announce its quarterly report

later in the day, with the update likely to fuel or dampen Wall

Street's rally in AI-related stocks and Japan's Nikkei, which

has heavy exposure to chip-related stocks.

Heavyweight Advantest ( ADTTF ) rallied 4.49% to give the

biggest boost to the Nikkei.

Camera maker Nikon ( NINOF ) surged 20.74% to 1,746.5 yen, a

daily limit high, after Bloomberg reported EssilorLuxottica SA

, the maker of Ray-Ban sunglasses, was exploring a

potential deal to increase its stake in the company.

The market weighed the yen's direction as expectations grew

for the Federal Reserve to cut interest rates in September, said

Shigetoshi Kamada, general manager at the research department at

Tachibana Securities.

"If the Bank of Japan raises its policy rate anytime soon,

the yen, which has been trading within a range, could spike. The

market is worried about that move," said Kamada.

Most automakers slipped, with Honda ( HMC ) losing

0.48% and Mitsubishi Motors ( MMTOF ) declining 1.95% after

cutting its full-year operating profit forecast by 30%.

Meanwhile, Toyota ( TM ) recovered from early losses to finish

0.21% higher.

Bank shares fell, with Mitsubishi UFJ Financial Group ( MUFG )

and Sumitomo Mitsui Financial Group ( SMFG ) shedding

0.99% and 0.85%, respectively.