(Updates with closing prices)

By Kevin Buckland

TOKYO, March 26 (Reuters) - Japan's Nikkei share average

closed little changed on Tuesday, as gains in chip-related

stocks offset declines by heavyweights such as Uniqlo-owner Fast

Retailing ( FRCOF ) and Nissan Motor ( NSANF ).

The Nikkei's three biggest supports were in the

semiconductor sphere, led by chipmaking-equipment giant Tokyo

Electron ( TOELF ), as they tracked a record rally in U.S. peer

Nvidia ( NVDA ).

However, Nissan ( NSANF ) slumped nearly 4% after an update

to its medium-term business plan that underwhelmed investors.

Fast Retailing ( FRCOF ) sagged 1.63%, continuing its retreat

from Friday's record high.

The Nikkei finished the day off 0.04% at 40,398.03

while the broader Topix rose 0.11%.

On Monday, the Nikkei slid 1.16% after hitting an

all-time peak of 41,087.75 on Friday. This year, it has rallied

more than 20%.

Noting support from the upward-pointing five-day moving

average, "I think it would be quite difficult for the Nikkei to

turn lower," said Kazuo Kamitani, an equity strategist at Nomura

Securities.

However, the market lacks a clear sense of direction amid a

dearth of fresh trading cues, he said.

Tokyo Electron ( TOELF ) rose 0.54% and was the biggest gainer by

index points due to its heavy weighting. Silicon producer

Shin-Etsu Chemical ( SHECF ) was no. 2, advancing 1.45%. Screen

Holdings ( DINRF ), another chipmaking-equipment manufacturer,

was next, rising more than 4%.

Nvidia ( NVDA ), the company at the centre of the artificial

intelligence fervour, notched a second successive all-time

closing high on Monday, after extending its winning run to a

sixth straight session.

Meanwhile, BlackRock increased its overweight position on

Japanese equities, citing the Bank of Japan's (BOJ) continued

dovish stance despite exiting negative interest rates last week.

"We think the BOJ will act cautiously and not sabotage the

return of mild inflation," BlackRock said in a note.

"Japanese equities become our highest-conviction tactical

view as solid corporate earnings and shareholder-friendly

reforms keep playing out."