TOKYO, Dec 16 (Reuters) - Japan's Nikkei share average

climbed on Monday as chip-related shares were boosted by a rise

in their U.S. peers, but investors' positioning ahead of major

central bank decisions this week capped gains.

The Nikkei added 0.2% to 39,533.55 by the midday

break, while the broader Topix shed 0.04% to 2,745.46.

While U.S. stocks closed the trading week near the unchanged

mark in a subdued session on Friday, the Philadelphia SE

Semiconductor Index surged 3.4%.

Japan's chip-related shares tracked their peers higher to

boost the Nikkei, led by chip-testing equipment maker

Advantest's ( ADTTF ) 1.9% rise.

Tokyo Electron ( TOELF ) added 0.5% and Socionext ( SOCNF )

rallied 9.1% to become the top percentage gainer on the

benchmark.

However, moves were restrained as market players awaited

what is expected to be another 25-basis-points cut by the U.S.

Federal Reserve on Wednesday, followed by the Bank of Japan's

(BOJ) monetary policy decision on Thursday.

"There's certainly a strong sense that investors are taking

a wait-and-see approach," said Hiroshi Namioka, chief strategist

at T&D Asset Management.

Reuters and other media outlets reported that the BOJ is

leaning toward keeping rates steady at their meeting this week.

The yen was last hovering around 153.88 per U.S. dollar

, struggling to recover from its worst week since

September on the back of those media reports.

Isuzu Motors ( ISUZF ), up 2%, was among exporter shares to

gain on a softer yen, although caution weighed, with Toyota ( TM )

rising only 0.1% and Mitsubishi Motor sliding

1.1%.

Among other major shares, AI-focused startup investor

SoftBank Group advanced 0.5% and Chugai Pharmaceutical ( CHGCF )

climbed 2%.

Uniqlo brand owner Fast Retailing ( FRCOF ) stumbled 0.2%,

while entertainment conglomerate Sony Group ( SONY ) slid 0.8%.