TOKYO, April 4 (Reuters) - Japan's Nikkei share average

rose sharply on Thursday, as investors scooped up stocks,

following a heavy sell-off to book profits earlier this week as

the new financial year started.

The Nikkei rose as much as 2%, before ending the

morning session up 1.65% at 40,101.82.

The broader Topix rose 1.46% to 2,746.14.

"Investors scooped up stocks on dips as a series of sell-off

related to profit-booking is over," said Naoki Fujiwara, senior

fund manager at Shinkin Asset Management.

"Their positive view on the Japanese stock market has not

changed so it was natural that there was a buying on dips."

Technology stocks led the gains, with chip-making equipment

maker Tokyo Electron ( TOELF ) rising 1.54%. Technology start-up

investor SoftBank Group ( SFTBF ) climbed 2.04% and robot maker

Fanuc ( FANUF ) jumped 4.09%.

The Nikkei has lost 4.6% from a record-high scaled on March

22 to the previous session's low.

The index hit successive record highs in March, after

crossing levels last seen in 1989 during the country's bubble

economy on Feb. 22.

There was a similar sell-off around this time in April 2023,

but it was not as drastic as this year, said Ryotaro Sawada,

senior analyst at Tokai Tokyo Intelligence Laboratory.

Among individual stocks, Kao jumped 5.22%, after

Hong Kong-based activist investor Oasis Management said it would

start a campaign against the cosmetics firm to redefine its

brand portfolio and improve marketing.

Itochu ( ITOCF ) rallied for a second session, rising 1.69%

after the trading firm said on Wednesday it aimed to boost

profit to a record 880 billion yen from an estimated 800 billion

yen in the year just ended.

Itochu ( ITOCF ), in which Warren Buffett's Berkshire Hathaway ( BRK/A )

holds a minority stake, surged 6.4% in the previous

session.