(Updates with closing prices)

By Kevin Buckland

TOKYO, Sept 17 (Reuters) - Japan's Nikkei share average

edged lower on Wednesday, tracking an overnight pullback on Wall

Street from record highs, ahead of a crucial U.S. Federal

Reserve interest rate decision later in the day.

The tech-heavy Nikkei ended the day down 0.3% at

44,790.38. In the previous session, the benchmark index advanced

to a record-high level of 45,055.38.

The broader Topix slid 0.7% to 3,145.83, after

marking a record high on Tuesday.

The outperformance of chip-sector shares made the

difference, as they took cues from the closely watched

Philadelphia SE semiconductor index, which rose 0.3% to

an all-time high on Tuesday.

The Nasdaq Composite and S&P 500 also renewed

record peaks, but closed the day lower.

Stocks have soared globally as traders cemented bets for a

series of near-term U.S. rate cuts, beginning with one later on

Wednesday. Market-implied odds signal at least two quarter-point

cuts by year-end, and 95 basis points of reductions by

end-March.

"The arithmetic is simple: the Fed needs to back up the

dovishness currently discounted into the rates curve to keep

stocks chugging along," said Kyle Rodda, an analyst at

Capital.com.

"If the requisite dovishness is absent, that's when things

could get spicy in the markets."

Chip-making equipment manufacturer Tokyo Electron ( TOELF )

jumped 5.4% on Wednesday to be the top performer in the Nikkei.

Shares of smaller peer Disco gained nearly 2%.

By contrast, chip-testing equipment maker Advantest ( ADTTF )

ended a roller-coaster session with a 1.8% loss.

Despite a stronger yen against the U.S. dollar, which tends

to weigh on exporters as it erodes the value of overseas

revenue, Sony ( SONY ) gained 1.1% and Toyota Motor ( TM )

rose 0.6%.

Of the Nikkei's 225 components, only 58 advanced, 164 fell,

and three traded flat.