TOKYO, April 23 (Reuters) - Japan's Nikkei share average

rose on Tuesday, buoyed by Wall Street's rally overnight,

although concerns about big tech earnings and tensions in the

Middle East capped gains.

The Nikkei had climbed 0.27% to 37,538.06 by the

midday recess and was on course for a second session of gains

after slumping to a 10-week low on Friday.

Trading was choppy on Tuesday, with the index gaining 1%

before retreating briefly into negative territory amid some

volatility in chip shares.

The broader Topix ended the morning session 0.15%

higher, with a value share sub-index gaining 0.21% to

outpace a 0.08% rise in growth shares.

All three of the main U.S. stock benchmarks rallied on

Monday, rebounding from big losses the previous week.

However, Tesla shares dropped 3.4% following price

cuts in a number of its major markets. The electric vehicle

maker is one of the so-called Magnificent Seven group of tech

giants that will report earnings this week, along with Meta

Platforms ( META ), Alphabet and Microsoft ( MSFT ).

"In terms of recent trends, Japan's stock market appears to

be heavily influenced by overseas factors," said Shoki Omori,

chief Japan desk strategist at Mizuho Securities.

"This week, not only will the Magnificent Seven release

their earnings, but other major companies will as well," he

said. "I think earnings are going to come out on the weaker

side, which could push the Nikkei down to 37,000."

The Nikkei rose to an all-time high of 41,087.75 a month ago

before retreating sharply to as low as 36,733.06 by Friday.

Among notable chip-sector names, Tokyo Electron ( TOELF )

edged up 0.06% and Advantest ( ADTTF ) added 0.25%. However,

Lasertec ( LSRCF ) was the biggest drag with a 2.81% slide and

silicon specialist Sumco ( SUMCF ) dropped 2.29%.

Utilities were a particular bright spot, with Osaka Gas ( OSGSF )

jumping 4.57% to be the Nikkei's biggest percentage

gainer after revising up its earnings forecast. Tokyo Gas ( TKGSF )

was no. 2, climbing 2.79%.

(Reporting by Kevin Buckland; Editing by Subhranshu Sahu)