TOKYO, July 3 (Reuters) - Japan's Nikkei share average

rose on Wednesday as heavyweight technology stocks tracked U.S.

megacap growth stocks higher overnight.

The Nikkei was up 0.81% at 40,398.35 as of 0142 GMT,

after opening 0.38% higher.

Wall Street stock indexes closed higher on Tuesday, boosted

by gains in Tesla and megacap growth stocks, but

volumes were thin ahead of the July 4 holiday and the closely

watched release of June nonfarm payrolls on Friday.

The broader Topix inched up 0.13% to 2,860.26, and

is set to log a fourth straight session of gains.

"Investors rotated their targets today. They sold

outperforming shares to take profits and bought cheaper stocks,"

said Naoki Fujiwara, senior fund manager at Shinkin Asset

Management.

"The Nikkei tracked Wall Street, higher but also those who

were late in catching up the recent rally bought Nikkei futures,

which lifted the main index," said Fujiwara.

Topix's growth stock index, which lags behind the

value share index for its weekly performance, rose 0.46%, while

the value share index slipped 0.34%.

Chip-making equipment maker Tokyo Electron ( TOELF ) rose

2.48% to provide the biggest boost to the Nikkei. Chip-testing

equipment maker Advantest ( ADTTF ) gained 1.64%.

Electronic components maker TDK jumped 3.99% and

silicon wafer maker Shin-Etsu Chemical ( SHECF ) climbed 2.4%.

Conglomerate Hitachi slipped 2.08% to weigh on the

Topix the most. Toyota Motor ( TM ) fell 0.9%.

Insurer Tokio Marine Holdings ( TKOMF ) dropped 1.56% and

banking group Mitsubishi UFJ Financial Group ( MUFG ) slipped

0.5%.

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

Exchange's prime market, 50% of the shares rose, while 45% fell

and 3% were unchanged.