(Updates with closing stock prices)

By Junko Fujita

TOKYO, July 30 (Reuters) - Japan's Nikkei share average

ended higher on Thursday as Advantest's ( ADTTF ) robust profit forecast

lifted chip-related stocks, while banks pulled down the broader

Topix.

The Nikkei rose 0.71% to close at 61,867.43, while

the Topix fell 0.54% to 3,952.5.

Advantest ( ADTTF ) jumped 10.85% after raising its annual

operating profit forecast by 35% on Wednesday as AI spending

drives demand for its chip-testing equipment.

"Thanks to Advantest's ( ADTTF ) tremendous outlook, shares in other

chip-related stocks rose," said Kazuaki Shimada, chief

strategist at IwaiCosmo Securities.

Chip-making equipment maker Tokyo Electron ( TOELF ) rose

4.48%. Memory chip maker Kioxia ( KXHCF ) climbed 2.92%, while

Murata Manufacturing ( MRAAF ), a leading maker of multi-layer

ceramic capacitors (MLCCs) used to regulate power in AI servers,

rose 2.97%.

Shimada said global concerns over heavy spending on AI

infrastructure outpacing revenue growth eased after Microsoft ( MSFT )

signalled its massive spending bets were paying off.

Nasdaq and S&P futures rose in Asian trading,

signalling a potential rebound in U.S. technology stocks later

in the day, said Shimada.

Wall Street ended sharply lower overnight after the Federal

Reserve held interest rates steady, with AI-related chip stocks

adding to recent declines ahead of quarterly reports from

Microsoft ( MSFT ) and Meta Platforms ( META ). The Nasdaq 100 index

marked an 11% drop from its June record high.

In Japan, Mitsubishi UFJ Financial Group ( MUFG ) and

Sumitomo Mitsui Financial Group ( SMFG ) fell more than 3% each.

"This is a typical trend in recent sessions where AI-related

shares are strong, value shares such as banks are sold off,"

said Shimada.

Toyota Motor ( TM ) fell 3%. System integrator Nomura

Research Institute ( NURAF ) lost 6.52% to become the biggest

percentage loser on the Nikkei.

Of the more than 1,500 stocks trading on the Tokyo Stock

Exchange's prime market, 34% rose, 63% fell and 1% traded flat.