(Updates with closing prices)

By Kevin Buckland

TOKYO, June 9 (Reuters) - Japan's Nikkei share average

advanced on Monday ahead of trade talks between the U.S. and

China in London later in the day, with investors watching for

any easing of restrictions on semiconductor shipments.

Both countries are under pressure to relieve tensions, with

China dominating global exports of rare earth minerals needed

for chips and other advanced technologies, which it has

restricted, while the U.S. has curtailed exports of chip-design

software to China.

A phone call between U.S. President Donald Trump and Chinese

counterpart Xi Jinping on Thursday led to the Monday talks, with

Trump later saying rare earth supply would no longer be a

problem for the United States.

The Nikkei rose 0.92% to 38,088.57 at the close.

The broader Topix rose 0.58%. A sub-index of growth

shares rallied 0.79%, outpacing a 0.38% rise in value

shares.

Chip-testing equipment maker and Nvidia supplier Advantest ( ADTTF )

was the Nikkei's biggest gainer in index-point terms

with a 4.86% climb. Another chip company, Socionext ( SOCNF ),

soared 7.34% to be the top performer in percentage terms.

"The trade talks in London are, at the very least, a step in

the direction of easing restrictions on chip shipments between

the U.S. and China," buoying the sector on Monday, said Yunosuke

Ikeda, chief macro strategist at Nomura.

Artificial intelligence-focused startup investor SoftBank

Group advanced 4.98%. Chip-making device manufacturer

Disco climbed 3.24%.

Another standout was Otsuka Holdings ( OTSKY ), which jumped

5.27% after the drugmaker said its experimental therapy for a

potentially life-threatening kidney disease more than halved

severe levels of protein in patients' urine.

At the other end, iSpace fell by its daily limit of

20% for a second straight session after it failed in its second

attempt to put a lunar lander on the moon last week.