TOKYO, Sept 16 (Reuters) - Japan's Nikkei share average

touched a record high on Tuesday, as technology stocks tracked

Wall Street's strong overnight finish ahead of the U.S. Federal

Reserve's crucial policy meeting later this week.

The Nikkei rose to as high as 45,055.38, crossing

the key 45,000 level for the first time. The index was up 0.3%

at 44,904.13 by the end of the morning session.

The market was closed on Monday for a public holiday.

The broader Topix rose 0.41% to 3,173.57 on Tuesday.

The Nikkei ended 4% higher last week, closing at a record

peak for a third consecutive week.

The rally was supported by a robust corporate outlook, which

prompted analysts to raise target prices of some local firms,

and the expectations for a new prime minister following the

decision of the current premier Shigeru Ishiba to resign, said

Hikaru Yasuda, chief equity strategist at SMBC Nikko Securities.

The firm outlook of the global economy, underpinned by

expectations of U.S. interest rate cuts, also underpinned the

Nikkei, he said.

The Nikkei may finish the year at about the 45,000 level,

but the index could briefly retreat if expectations for the U.S.

rate cuts recede and Treasury yields rise, said Yasuda.

"The market expectations for the U.S. rate cuts are fairly

strong," he said.

Shares of chipmaking equipment giant Tokyo Electron ( TOELF )

rose 2.17%, providing the biggest boost to the Nikkei.

Chip-testing equipment maker Advantest ( ADTTF ) recovered from

early losses to edge 0.04% higher.

Wafer maker Sumco ( SUMCF ) surged 9.8% to be the biggest

percentage gainer in the Nikkei. Chip-related Disco and

Resonac Holdings ( SHWDF ) jumped 6.9% and 5.4%, respectively.

Uniqlo-brand owner Fast Retailing ( FRCOF ) fell 1.26% to

weigh on the Nikkei the most.

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

Exchange's prime market, 68% stocks advanced, 27% fell, and 3%

traded flat.