TOKYO, July 10 (Reuters) - Japan's Nikkei share average

rose in a choppy morning session on Wednesday as financial

shares outperformed and investors snapped up stocks after the

benchmark index's weak start.

The Nikkei was up 0.13% at 41,635.53 by the midday

break, after starting in negative territory as profit-taking

prevailed following its record closing high in the previous

session. The broader Topix rose 0.09% to 2,898.16.

Big-name stocks picked up to give the Nikkei a lift, with

Fast Retailing ( FRCOF ), the parent company of Uniqlo, and

AI-focused startup investor SoftBank Group both gaining

around 0.9%.

Technology and semiconductor shares, which saw a selloff in

early trading after rallying on Tuesday, narrowed their losses

or flipped into positive territory.

"For now, the technicals are highly constructive with

investors buying the break-out," although the risk that global

yields will move higher remains amid political uncertainty, said

Kyle Rodda, senior financial market analyst at Capital.com.

Higher yields offer investors less risk while also making

borrowing to fuel growth more expensive.

Japan's main stock indexes have marched to all-time highs

over the last two weeks. The Nikkei set a fresh record peak of

41,769.35 in the previous session and secured a closing high of

41,580.17.

Among the Tokyo Stock Exchange's 33 industry sectors,

financials led gains, with insurance firms, up 2.7%,

at the top of the pack. Securities and banks

were up 1.1% and 0.8%, respectively.

The Bank of Japan is meeting with bond market participants

on Wednesday for a second day this week, while data showed the

country's wholesale inflation accelerated in June as the yen

declined, bringing policy normalisation back into focus.

Among individual shares, Recruit Holdings ( RCRRF ) climbed

2.2% after the staffing agency announced plans to buy back

shares.

Kokusai Electric ( KOKSF ) slid 8.6% a day after Reuters

reported private equity firm KKR planned to cut its

stake in the chip equipment manufacturer.