TOKYO, Oct 7 (Reuters) - Japan's Nikkei share average

hit a record high on Tuesday as chip-related stocks advanced to

track their U.S. peers, but the index pared gains as enthusiasm

toward a new leader of the nation's ruling party retreated.

As of 0044 GMT, the Nikkei was up 0.3% at 48,075.52,

after hitting a record high of 48,527.33 earlier in the sesion.

The broader Topix edged up 0.14% at 3,230.82.

The Nikkei rallied for a third straight session on Monday,

and crossed the 48,000 level for the first time, after Sanae

Takaichi was all but confirmed to become the country's next

premier, stoking bets on a revival in big spending and loose

monetary policy.

"Investors continued to buy stocks on expectations for

Takaichi's policy today, but the market did not have the

momentum it had in the previous session," said Yugo Tsuboi,

chief strategist at Daiwa Securities.

"Shares are not rising in a broad rally, with half of the

stocks falling."

Chip-testing equipment maker Advantest ( ADTTF ) rose 1.34%,

while SoftBank Group, an investor in artificial

intelligence-related firms, rose 0.96% to track its U.S. peers.

Overnight, the S&P 500 and the Nasdaq

reached record closing highs on Monday, as AI-related dealmaking

boosted investor sentiment even as the U.S. government shutdown

extended through its sixth day.

Chip-making equipment maker Tokyo Electron ( TOELF ) reversed

gains to fall 0.36%.

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

Exchange's prime market, 52% fell, 42% rose and 5% traded flat.