TOKYO, July 29 (Reuters) - Japan's Nikkei share average

seesawed on Wednesday, as the impact of dip-buying was offset by

caution ahead of U.S. tech earnings and as investors assessed

the latest developments in the Middle East.

The Nikkei was last down 0.04% to 62,337.37 after

swaying between gains and losses. The broader Topix

inched up 0.33% to 3,976.55. On Tuesday, the Nikkei bluechip

fell more than 4% to its lowest in two months on a chips

selloff.

"The market will likely continue to be driven today by moves

in AI chip-related stocks," said Maki Sawada, an equity

strategist at Nomura Securities.

"Even if there is no specific catalyst, the Nikkei average

could see wider intraday swings... as AI chip-related and other

high-priced stocks have become more volatile ahead of earnings

announcements. That pattern is likely to continue today."

AI-related shares were mostly lower, with Murata

Manufacturing ( MRAAF ) down nearly 10%, Tokyo Electron ( TOELF )

shedding 6.19% and SoftBank Group losing 5.75%.

The Nikkei has closely tracked moves in South Korea's

benchmark KOSPI and the U.S. Philadelphia semiconductor

index.

The tech-heavy KOSPI fell after SK Hynix ( SKHY )

reported bumper quarterly results that nevertheless fell short

of elevated investor expectations. The U.S. chip index was down

almost 4.5% overnight on Tuesday.

Investors were awaiting earnings from U.S. tech

heavyweights, with Microsoft ( MSFT ) due to report on Wednesday

and Amazon ( AMZN ) on Thursday.

In Japan, a heavily weighted Nikkei component, Advantest ( ADTTF )

, a chip-testing equipment maker, is scheduled to

announce results after the market closes on Wednesday.

The U.S. military said on Tuesday it intercepted multiple

ballistic missiles launched by Iran towards U.S. forces in the

Middle East.

Oil prices rose by more than $2 a barrel in early trade on

shrinking U.S. crude inventories.

Meanwhile, Keyence ( KYCCF ) surged as much as 15.42%,

becoming the Nikkei's biggest percentage gainer, after the

factory automation sensors and systems provider reported robust

earnings.

Video games and entertainment company Konami ( KNAMF ) gained

8.81% and Shiseido ( SSDOF ), a global cosmetics and skincare

company, rose 5.41%.

Market breadth was positive, with 135 gainers against 89

decliners.

Shares of companies affected by Tuesday's magnitude 7.1

earthquake in Kumamoto, southern Japan, including retailer Aeon

and Nippon Paper Industries ( NIJPF ), showed limited

reaction.

The earthquake killed at least 13 people near Kumamoto and

rescuers are frantically searching for survivors trapped beneath

the rubble, Prime Minister Sanae Takaichi said.

(Reporting by Satoshi Sugiyama; Editing by Mrigank Dhaniwala)