(Rewrites first paragraph, adds comments in paragraphs 4 and 5,

updates with closing prices)

TOKYO, June 25 (Reuters) - Japan's Nikkei share average

ended at a more than four-month high on Wednesday, as

chip-related stocks tracked overnight gains of their U.S. peers.

The Nikkei rose 0.39% to 38,942.07, its highest

closing level since February 19, after flitting between modest

gains and losses.

The broader Topix inched up 0.03% at 2,782.24.

"The Nikkei swayed between gains and losses today as

investors tried to book profits from gains in the previous

session," said Shigetoshi Kamada, general manager at the

research department at Tachibana Securities.

"But the index is showing an upside trend now, so as long as

we do not see any negative news, investors want to buy stocks to

cover their short positions."

The Nikkei snapped a three-day losing streak to end higher

on Tuesday after U.S. President Donald Trump announced the

ceasefire agreement late Monday.

The truce appeared fragile: Both Israel and Iran took hours

to acknowledge they had accepted the ceasefire and accused each

other of violating it.

Still, investors viewed the ceasefire rhetoric as a sign of

de-escalating tensions, pushing the U.S. stocks up more than 1%

overnight.

Chip-related stocks advanced, tracking a 3.8% gain in the

U.S. Philadelphia Semiconductor Index.

Advantest ( ADTTF ) added 3.32% and Tokyo Electron ( TOELF )

climbed 3.26%, becoming the biggest source of the Nikkei's gain.

Technology investor SoftBank Group fell 1.73% to

weigh on the Nikkei the most. Olympus tanked 10.6%

after the U.S. Food and Drug Administration issued an import

alert for certain medical devices made by the medical equipment

maker.

Shares of Toyota Motor ( TM ) lost 1.18%.

Of more than 1,600 stocks trading on the Tokyo Stock

Exchange's prime market, 45% rose and 50% dropped, while 4%

traded flat.