HONG KONG, April 30 (Reuters) - Japan's Nikkei share

average rose slightly on Wednesday as investors awaited

developments in U.S.-Japan tariff talks, putting the benchmark

on track for its first monthly gain since December.

The Nikkei ended the morning session 0.2% higher at

35,902.51, after briefly slipping into losses in early trades.

The index was headed toward its fifth straight session of gains,

the longest winning streak since last August.

The broader Topix added 0.4% to 2,660.24.

Japan's top trade negotiator, Ryosei Akazawa, said he aims

to make steady progress in tariff negotiations with the U.S. He

will travel to Washington later in the day to meet his

counterparts for a second round of discussions.

Fresh data showed Japan's March factory output fell more

than expected, dragged down by its key motor vehicle industry as

U.S. President Donald Trump's tariff policies continued to

rattle manufacturers.

"The Nikkei's gains were limited as investors are waiting

for the next step in the tariff talks," said Shuutarou Yasuda, a

market analyst at Tokai Tokyo Intelligence Laboratory.

"For the Nikkei to climb further, a concrete cue - such as

an agreement between Japan and the U.S. - is needed."

The benchmark index has now largely recovered from the

shocks of the tariffs announced in early April, gaining 0.8% so

far in April and looking to end its first month in the green

since December.

The markets have largely restored the calm in recent weeks

on hopes of easing trade tensions. Moving away from U.S. assets

amid the tariff-induced chaos also helped Nikkei's rebound.

The stock that gained the most on Wednesday among the top 30

core Topix names was Sony Group ( SONY ), up 5.11%, after a

report the group is considering spinning off its semiconductor

arm, in a move that would unlock value in the company.

The under-performers were Hitachi ( HTHIF ), down 4.8%,

followed by Fast Retailing ( FRCOF ), which lost 2.4%.

Meanwhile, the Bank of Japan (BOJ) is widely expected to

leave rates unchanged at its two-day policy meeting ending

Thursday.

A weaker yen generally benefits Japanese equities by

boosting the value of exporters' overseas revenues. Last month,

Trump accused Tokyo of pursuing policies to weaken the yen,

arguing that it gave Japan an unfair trade advantage.