(Updates with closing prices)

TOKYO, Dec 11 (Reuters) - Japan's Nikkei share average

erased losses to end marginally higher on Wednesday as investors

bought back cheap stocks, while a key inflation report from the

United States weighed on sentiment as it is likely to influence

the Federal Reserve's rate path.

The Nikkei ended 0.01% higher at 39,372.23, after

falling as much as 0.65% earlier in the session.

The broader Topix rose 0.29% to 2,749.31.

"There were little market-moving cues today but investors

bought back stocks when stocks fell to reasonable levels," said

Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence

Laboratory.

"But gains were limited by caution for the outcome of the

U.S. consumer price report," he said.

Japanese equities opened lower, tracking declines in Wall

Street's main indexes on Tuesday ahead of the November inflation

data due on Wednesday - one of the last major reports ahead of

the Fed's Dec. 17-18 meeting.

Investors also awaited the Bank of Japan's (BOJ) policy

decision due on Dec. 19.

BOJ Governor Kazuo Ueda has signalled readiness to hike

rates again in the near term if the bank becomes more convinced

that inflation will stay around 2%, backed by solid consumption

and wage growth.

Uniqlo-brand owner Fast Retailing ( FRCOF ) rose 0.37% to

become the biggest boost for the Nikkei.

Chip-related heavyweights fell, with Advantest ( ADTTF ) and

Tokyo Electron ( TOELF ) losing 0.51% and 0.49%, respectively.

Chip-making device supplier Disco fell 3.65% to

become the biggest percentage loser on the Nikkei.

Kawasaki Heavy Industries ( KWHIF ) jumped 10.28% to become

the top percentage gainer on the Nikkei. Peer IHI rose

6.25%.

TopCon ( TOPCF ) surged 23% to a daily limit as the eyecare

products maker said it is exploring going private among other

measures to raise corporate value, following reports that

private equity firms were placing bids to take the firm private.