TOKYO, Oct 15 (Reuters) - Japan's Nikkei share gauge

rebounded on Wednesday from its steepest drop since April, as

investors piled back into tech stocks that were pummelled on

concerns over China-U.S. trade friction.

The Nikkei 225 Index rallied 1% to 47,300.05,

recovering part of its 2.6% slide in the previous session as

Japanese markets returned from a holiday. The broader Topix

rose 1.2%.

SoftBank Group, a major investor in chips and

artificial intelligence, rose 2.9%, recovering from a 6% slide

on Tuesday. Chip-testing equipment maker Advantest ( ADTTF )

rallied 0.8% after a two-day skid.

Investor sentiment has been dented by an escalation of

tensions between the United States and China, as well as

political haggling to decide Japan's next prime minister.

"We're seeing a corrective rebound in semiconductor-related

stocks that fell sharply yesterday," said Fumika Shimizu, a

strategist at Nomura Securities.

"Uncertainty surrounding Japan's political situation has

persisted since last Friday," Shimizu said. "Achieving clarity

on that front would likely be the driver needed for a genuine

return to an upward trend."

China last week announced a major expansion of its rare

earths export controls, and U.S. President Donald Trump

threatened to raise tariffs on Chinese goods to triple digits.

Sanae Takaichi, the head of Japan's ruling Liberal

Democratic Party (LDP), is making arrangements to hold meetings

with three major opposition parties on Wednesday, the Jiji news

agency reported.

Her bid to become prime minister was thrown into doubt when

the LDP's junior coalition partner quit on Friday.

Online retailer Mercari ( MRCIF ) surged 11.5% after saying

it was pulling out of its on-demand employment service. Mall

operator Aeon jumped 9.3% after reporting record sales

and operating profit for the half-year period.

Sapporo Holdings ( SOOBF ) advanced 2.3% after the Nikkei

newspaper said the beer maker was close to a deal to sell its

real estate business.

(Editing by Subhranshu Sahu)