TOKYO, April 12 (Reuters) - Japan's Nikkei share average

rose on Friday as technology stocks tracked the strength in

their U.S. peers overnight, although a decline in Uniqlo-parent

Fast Retailing ( FRCOF ) limited the gains.

The Nikkei was up 0.51% at 39,642.66 by the midday

break and is set to clock an increase of 1.67% for the week.

The broader Topix added 0.62% to 2,764.02 and is on

course to post a 2.28% weekly rise.

"The Nasdaq was strong overnight despite the rise in U.S.

Treasury yields, which gave confidence to investors," said

Shigetoshi Kamada, general manager at the research department at

Tachibana Securities.

U.S. stocks gained sharply on Thursday, led by tech-related

momentum stocks, as softer-than-expected Producer Prices index

data rekindled hopes that inflation remains in a cooling trend,

after a strong inflation reading the day earlier.

Treasury yields, however, continued to climb as the

hotter-than-anticipated Consumer Price index data raised doubts

about the Federal Reserve's ability to lower rates this year.

Japanese chip-related stocks rose, with Tokyo Electron ( TOELF )

and Lasertec ( LSRCF ) rising 1.46% and 3.26%,

respectively. Technology investor SoftBank Group gained

0.47%.

Property developer Mitsui Fudosan ( MTSFF ) surged 8.24%

after plans for shareholder returns, including via a 40 billion

yen ($261.22 million) share buyback.

Its peers rose, with Tokyo Tatemono ( TYTMF ) and Mitsubishi

Estate ( MITEF ) jumping 8.44% and 7.94%, respectively.

The property index advanced 5.7%, the most among

the Tokyo Stock Exchange's 33 industry sub-indexes.

"As we approach the corporate earnings season, the market

expects shareholder returns from more cash-rich firms. Mitsui

Fudosan ( MTSFF ) raised those expectations," said Kamada.

Fast Retailing ( FRCOF ) lost 3.63% after the owner of the

Uniqlo brand left its full-year operating profit forecast

unchanged.

The stock was the biggest drag on the Nikkei, erasing 175.55

points. The index gained 200 points in the morning session.

Of the index's 225 components, 162 rose and 60 fell, with

three flat.

($1 = 153.1300 yen)