TOKYO, Oct 10 (Reuters) - Japan's Nikkei share average

rose on Thursday, tracking Wall Street's overnight strong

finish, although it pared gains as investors sold stocks to book

profits.

The Nikkei rose 0.3% to 39,353.05 by the midday

break, after climbing to as high as 39,616.59 earlier in the

session.

The broader Topix was up 0.22% at 2,713.08.

Wall Street stocks advanced on Wednesday with the S&P 500

and the Dow scoring record closing highs after the release of

the Federal Reserve's meeting minutes and ahead of September

inflation data and the earnings season.

The environment for the Nikkei was good, with the Dow and

the S&P closing at a record high and the semiconductor index

rising, said Takehiko Masuzawa, trading head of Phillip

Securities Japan.

"But the gains narrowed because investors sold stocks to

book profits."

The Nikkei will trade higher throughout the session but

there is little cue to lift the index closer to the 40,000

level, said Masuzawa.

The market is awaiting the U.S. Consumer Price Index

inflation report, due later in the day.

Technology investor SoftBank Group rose 3.27% to

give the biggest boost to the Nikkei. Uniqlo brand owner Fast

Retailing ( FRCOF ) gained 0.85%.

Camera maker Nikon ( NINOF ) rose 3.32% to become the

Nikkei's top percentage gainer.

Lion surged 7.35% after a report that Japan

Activation Capital, an investment fund established by a former

Carlyle executive in Japan, has invested in the consumer goods

maker.

Aeon tanked 8.35% to become the biggest percentage

loser on the Nikkei after the supermarket chain posted a 76.5%

decline in its half-year net profit through August.

Kawasaki Heavy Industries ( KWHIF ) lost 5.19%.

Of the 225 components on the Nikkei, 147 stocks rose and 7

fell with one trading flat.