TOKYO, Oct 2 (Reuters) - Japan's Nikkei share average

gained slightly on Thursday after four straight sessions of

losses, as chip-related stocks tracked their U.S. peers higher.

The Nikkei rose 0.28% to 44,675.96 by the midday

break after shedding 2.6% in the last four sessions, with some

analysts expecting the recovery to be short-lived given the fall

in the broader Topix.

Earlier in the day, the Nikkei rose as much as 1.3%. The

Topix fell 0.72% to 3,072.32.

"Retail investors refrain from buying stocks as they are

waiting for the shares to fall further," said Shigetoshi Kamada,

general manager at the research department at Tachibana

Securities.

"The Nikkei has risen too high. The decline in the Topix

index is a real reflection of the market sentiment."

The Nikkei, which is heavily weighted by chip-related

shares, hit a record high last month, helped by gains in

chip-related shares. It has risen 12% so far this year, heading

for a third straight annual gain.

Chip-making equipment maker Tokyo Electron ( TOELF ) jumped

5.7% on Thursday after the U.S. Philadelphia chip index

notched a record high overnight.

Chip-testing equipment maker Advantest ( ADTTF ) rose 2.11%

and artificial intelligence technology investor SoftBank Group

jumped 5.13%.

"Investors who bet on U.S. technology stocks bought Japanese

tech shares today," Kamada said.

Bank shares fell, with Mitsubishi UFJ Financial Group ( MUFG )

down 1.64%. Mizuho Financial Group ( MFG ) and

Sumitomo Mitsui Financial Group ( SMFG ) lost 1.25% and 0.99%,

respectively.

Auto shares fell, with Toyota Motor ( TM ) and Honda Motor ( HMC )

losing 0.99% and 1.59%, respectively.

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

Exchange's prime market, 74% fell, 22% rose and 2% traded flat.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)