TOKYO, Aug 14 (Reuters) - Japan's Nikkei share average

rose in early trade on Wednesday, after soft U.S. producer

prices data overnight buoyed rate-cut expectations and supported

risk appetite.

The Nikkei was up 0.3% at 36,352.80 as of 0026 GMT,

while the broader Topix rose 0.7%.

U.S. producer prices increased less than expected in July as

a rise in the cost of goods was tempered by cheaper services,

indicating that inflation continued to moderate.

Wall Street gained overnight on the latest economic data,

with all three main stock indexes ending higher in another boost

to investor sentiment.

Japan's technology shares tracked their U.S. peers higher.

Artificial intelligence-focused startup investor SoftBank Group

and chip-testing equipment maker Advantest ( ADTTF )

advanced to give the Nikkei a sizeable lift.

Financials led the gains, with insurance firms up

over 2%. Banks rose more than 1%.

(Reporting by Brigid Riley; Editing by Subhranshu Sahu)