TOKYO, July 28 (Reuters) - Japan's Nikkei share average

erased early gains to trade lower on Monday, as investors locked

in profits following a recent rally and shifted their focus to

upcoming corporate earnings.

As of 0217 GMT, the Nikkei was down 0.8% at 41,115.60, after

rising as much as 0.2% earlier in the session.

The broader Topix slipped 0.45% at 2,938.55.

"Investors sold stocks to book profits from a recent rally;

that's a short answer to today's declines," said Seiichi Suzuki,

chief equity market analyst at Tokai Tokyo Intelligence

Laboratory.

"But they sold stocks because the shares jumped last week,

and were concerned that corporate earnings may not justify the

current level of the equities."

The Nikkei climbed to a one-year high last week after Japan

and the United States struck a deal to lower the hefty tariffs

U.S. President Donald Trump threatened to impose on goods from

Japan.

Chip-related shares led the declines, with Advantest ( ADTTF )

slipping 7.66% to become the biggest drag for the

Nikkei.

Screen Holdings ( DINRF ) fell 7.24% after the chip-making

equipment maker reported a 12.2% decline in its latest quarterly

operating profit.

The banking sector fell 1.78% to become the worst

performer among the Tokyo Stock Exchange's 33 industry

sub-indexes.

Bucking the trend, Fanuc jumped 5.6% to become the top

percentage gainer in the Nikkei, after the robot maker's latest

quarterly operating profit jumped nearly 30%. The company also

said that its forecast factored in the 15% U.S. tariff set to

take effect on August 1.

Of the more than 1,600 stocks trading on the TSE's prime

section, 46% rose and 49% fell, with 4% trading flat.