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

reversed early losses to trade higher on Thursday, as investors

awaited Wall Street's response to AI chipmaker Nvidia's ( NVDA ) strong

quarterly outlook even as its Tokyo-based supplier Advantest ( ADTTF )

edged lower.

As of 0146 GMT, the Nikkei was up 0.4% at 42,676.30,

after falling as much as 0.5% earlier in the session.

The broader Topix rose 0.3% to 3,079.01.

"The main focus is Nvidia ( NVDA ). The market is waiting to see how

the shares will perform on Wall Street later in the day," said

Takamasa Ikeda, senior portfolio manager at GCI Asset

Management.

U.S.-based chipmaker Nvidia ( NVDA ) forecast third-quarter

revenue above market estimates on Wednesday, helped by robust

demand for its AI chips, but the stock fell 3% in after-hours

trading as its on-hold China business remained uncertain.

Nvidia ( NVDA ) shares are a key driver of Japan's Nikkei, which is

heavily weighted toward chip-related stocks. On Thursday, the

index opened lower but reversed losses as chip-testing equipment

maker Advantest ( ADTTF ) pared its earlier decline.

Advantest ( ADTTF ) was last down 0.22%, after falling as much as 3.6%

earlier in the session.

Technology investor SoftBank Group rose 3.44%,

contributing the biggest boost to the Nikkei. Shares of

chip-making equipment maker Tokyo Electron ( TOELF ) rose 0.71%.

Cable maker Fujikura ( FKURF ), a gauge for data centre

investments, jumped 3%.

Sompo Holdings ( NHOLF ) jumped 4.49% after the Japanese

insurer said it would acquire New York-listed Aspen Insurance

Holdings ( AHL ) for about $3.5 billion.

Energy explorers rose 3.25% to become the top

performers among the Tokyo Stock Exchange's (TSE) 33 industry

sub-indexes.

Uniqlo-brand owner Fast Retailing ( FRCOF ) slipped 0.34% to

become the biggest drag for the Nikkei.

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

51% advanced, 42% fell, and 5% traded flat.