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

climbed on Tuesday, powered by a rebound in technology stocks

that have helped drive the gauge's record quarterly gains.

The benchmark Nikkei 225 advanced 1.36% to 70,416.02

in early trading. The index is poised for a 36% gain in the past

three months, the sharpest quarterly advance in data going back

to 1965. The broader Topix rose 0.73% to 4,010.88.

Japanese stocks tracked a positive tone in global equities

after the United States and Iran agreed to halt hostilities and

renew talks over the Strait of Hormuz. U.S. stocks ended sharply

higher overnight, with the Dow hitting a record closing high.

"Reports that working-level talks between the U.S. and Iran

are expected to take place should also provide support for stock

prices," Sony Financial Group analysts said in a report.

"However, as institutional investors are expected to adjust

their portfolios ahead of the end of the quarter today, volatile

price movements are possible."

On the domestic front, Japan's May industrial output data showed

factory output rose 0.5% month-on-month, below expectations,

while manufacturers forecast a stronger 3.7% increase in June.

Foreign exchange is also in focus, with the yen falling to a

40-year low against the dollar overnight.

There were 149 advancers on the Nikkei 225 against 72

decliners, and three were unchanged.

The largest percentage gainers in the index were Rakuten

Group ( RKUNF ), up 5.39%; Tokyo Electron ( TOELF ), up 5.09%; and

Fujikura ( FKURF ), up 5.06%.

The largest losers were Archion ( ANCPF ), down 2.41%,

followed by Takashimaya ( TKSHF ), 1.51% lower, and Shift

, which lost 1.25%.