TOKYO, April 21 (Reuters) - Japan's Nikkei share average

rose on Tuesday as optimism grew from reports that Tehran is

considering attending peace talks with Washington in Pakistan,

lifting risk appetite and prompting investors to buy domestic

heavyweight technology stocks.

The Nikkei was up 1.07% at 59,453.44, as of 0147

GMT, while the broader Topix inched 0.14% higher to

3,782,43.

An uneasy ceasefire between the United States and Iran

frayed after the U.S. announced the seizure of an Iranian cargo

ship, drawing vows of retaliation from Tehran. Iran said over

the weekend it would skip a second round of negotiations, though

a senior official later told Reuters the country may yet send

delegates to talks expected in Islamabad.

In Japan, chip-related shares climbed, with Tokyo Electron ( TOELF )

and Advantest ( ADTTF ) up 4.3% and 1.79%, respectively.

Kioxia Holdings ( KXHCF ) jumped 5.3% and technology investor

SoftBank Group gained 4.23%.

"The market might be too optimistic about the aftermath of

the war. There is a concern about the impact of the disruption

of the supply chain," said Takamasa Ikeda, senior portfolio

manager at GCI Asset Management.

"There may be a big correction of the stock market in the

summer if the impact of the supply shortage surfaces."

Ikeda noted that tightened supply of helium, a key component

in cable productions, could weigh on Japan's high-performing

fibre optic cable makers, including Fujikura ( FKURF ) and

Furukawa Electric ( FUWAF ).

Fujikura ( FKURF ) rose 5% on Tuesday, while Furukawa gained 3.5%.

In other stock movements, Nojima ( NJMLF ) surged 10.2%

following reports that the electronics retailer plans to acquire

Hitachi's ( HTHIF ) consumer appliances unit, Hitachi Global Life

Solutions, for more than 100 billion yen ($630.32 million).

Hitachi ( HTHIF ) shares edged 0.3% higher.

Banking shares declined, with Mitsubishi UFJ Financial Group ( MUFG )

and Mizuho Financial Group ( MFG ) down 0.26% and 1%,

respectively.

Toyota Motor ( TM ) lost 2% in early trade.

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

Exchange's prime market, 39% rose, 56% declined and 4% remained

unchanged.