TOKYO, Sept 17 (Reuters) - Japan's Nikkei share average

edged higher on Wednesday, with chip-sector shares tracking an

overnight rally among U.S. peers, ahead of a crucial Federal

Reserve interest rate decision later in the day.

The tech-heavy Nikkei was up 0.2% at 44,977.44, as

of 0140 GMT, inching back towards the previous session's

record-high level of 45,055.38.

The broader Topix, though, eased 0.4% to 3,155.67,

after marking a record high on Tuesday.

Overnight, the closely watched Philadelphia SE semiconductor

index rose 0.3% to an all-time high. The Nasdaq Composite

and S&P 500 also renewed record peaks, but closed

the day lower.

Stocks have soared globally as traders cemented bets for a

series of near-term U.S. rate cuts, beginning with one later on

Wednesday. Market-implied odds signal at least two quarter-point

cuts by year-end, and 96 basis points of reductions by

end-March.

"The arithmetic is simple: the Fed needs to back up the

dovishness currently discounted into the rates curve to keep

stocks chugging along," said Kyle Rodda, an analyst at

Capital.com.

"If the requisite dovishness is absent, that's when things

could get spicy in the markets."

Chip-making equipment manufacturer Tokyo Electron ( TOELF )

climbed 6.3% on Wednesday to be the Nikkei's top performer.

Shares of smaller peer Disco gained 2.8%.

Chip-testing equipment maker Advantest ( ADTTF ) recovered

from early losses to trade 0.5% higher.

Despite a stronger yen against the U.S. dollar, which tends

to weigh on exporters as it erodes the value of overseas

revenue, Sony ( SONY ) gained 1.3% and Toyota Motor ( TM )

rose 0.4%.