TOKYO, June 6 (Reuters) - Japan's Nikkei share average

rose more than 1% on Thursday, as Tokyo Electron ( TOELF ) and other

chip-related stocks tracked their U.S. peers higher.

The Nikkei was up 1.18% at 38,944.31, as of 0203

GMT, after briefly crossing the 39,000 level earlier in the

session.

"Chip shares lifted the Nikkei, but its gains were capped as

investors sold stocks as soon as the index crossed a milestone,"

said Shuutarou Yasuda, a market analyst at Tokai

Tokyo Intelligence Laboratory, referring to the 39,000 level.

Chip-making equipment maker Tokyo Electron ( TOELF ) jumped

4.68% to provide the biggest boost to the Nikkei. Chip-testing

equipment maker Advantest ( ADTTF ) jumped 5.22%.

U.S. chip stocks leapt 4.5% overnight, buoyed by

gains to Nvidia ( NVDA ) and Taiwan Semiconductor Manufacturing

.

Nvidia's ( NVDA ) market value hit the $3 trillion mark for the first

time as the chipmaker overtook Apple ( AAPL ) to become the

world's second-most valuable company.

"Until the market confirms policy path of central banks in

the U.S., Europe and Japan, it will be hard to make active bets

on stocks," Yasuda said.

The European Central Bank meets on Thursday, and markets

price in an almost certain chance of a first rate cut. The

Federal Reserve and the Bank of Japan will hold their policy

meetings next week.

The broader Topix was up 0.83% at 2,771.07, with

Toyota Motor ( TM ) rising 2.14%.

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

Exchange's prime section, 48% rose while 46% fell, with 4% flat.

Technology investor SoftBank Group gained for a

second session, rising 3.63% as activist investor Elliott

Management has rebuilt a stake worth more than $2 billion and is

calling for a $15 billion share buyback.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)