(Updates with closing levels)

TOKYO, Nov 6 (Reuters) - Japan's Nikkei share average

ended at a three-week high on Wednesday, led by chip and

defence stocks, while market participants keenly awaited the

outcome of the U.S. presidential election.

The Nikkei jumped 2.61% to 39,480.67, its highest

closing level since Oct. 15. The index also posted its biggest

daily gain since Sept. 26.

The broader Topix ended 1.94% higher at 2,715.92.

The Nikkei accelerated gains as the dollar strengthened

against the yen. The dollar was last up 1.7% at 154.24

.

A weaker yen tends to boost Japanese exporters' overseas

earnings when repatriated.

"The market is looking ahead of the election outcome

already, with the dollar gaining and Japanese stocks rising,"

said Yugo Tsuboi, chief strategist at Daiwa Securities.

Donald Trump defeated Democrat Kamala Harris in the

battleground states of North Carolina and Georgia, taking him

closer to completing a stunning political comeback four years

after he left the White House.

Japanese technology stocks rose, with chip-testing equipment

maker Advantest ( ADTTF ) jumping 8% to become the biggest boost

to the Nikkei.

Technology start-up investor SoftBank Group rose

5.13%.

Defence stocks also rose, with IHI surging 19.28%

as the heavy machinery maker raised its annual net profit

forecast for the fiscal year ending March 2025.

Peers Mitsubishi Heavy Industries ( MHVYF ) and Kawasaki

Heavy Industries ( KWHIF ) jumped 9.85% and 7.34%, respectively.

"This is a typical Trump trade," said Takashi Hiroki, chief

strategist at Monex, as Trump would ask Japan to rely less on

the U.S. for its own defence.

Toyota Motor ( TM ) reversed early losses to end 1.72%

higher as the automaker posted its first quarterly profit drop

in two years on Wednesday.

Honda Motor ( HMC ) tanked 6.46%, as the automaker reported

a surprise 15% drop in second-quarter operating profit.

Of the Nikkei's 225 components, 167 stocks rose and 52 fell

with six ending flat.