(Updates at 0630 GMT)

TOKYO, Oct 10 (Reuters) - Japan's Nikkei share average

ended higher on Thursday, tracking a strong finish on Wall

Street overnight, although it pared gains as investors took

profits ahead of the September U.S. inflation data.

The Nikkei closed up 0.26% at 39,380.89, after

climbing as much as 0.86% earlier in the session.

The broader Topix closed up 0.2% at 2,712.67.

Wall Street stocks advanced on Wednesday with the S&P 500

and the Dow scoring record closing highs after the release of

the Federal Reserve's meeting minutes and ahead of September

inflation data and the earnings season.

The environment for the Nikkei was good, with the Dow and

the S&P closing at a record high and the semiconductor index

rising, said Takehiko Masuzawa, trading head of Phillip

Securities Japan.

"But the gains narrowed because investors sold stocks to

book profits."

The market stayed away from active trade ahead of the U.S.

Consumer Price Index report due later in the day, which

investors will use to gauge the Federal Reserve's rate-cut path.

Since a blowout U.S. employment report last week, bets of a

large 50 basis points cut in November have been completely

priced out, with 85% of bets now on a 25 bps cut.

Technology investor SoftBank Group rose 3.97% to

give the biggest boost to the Nikkei. Uniqlo brand owner Fast

Retailing ( FRCOF ) gained 1.28%.

Camera maker Nikon ( NINOF ) rose 5.55% to become the

Nikkei's top percentage gainer.

Lion Corp ( LIOPF ) jumped 6.95% after a report that Japan

Activation Capital, an investment fund established by a former

Carlyle executive in Japan, has invested in the consumer goods

maker.

On the flip side, supermarket chain Aeon tanked

8.66%, weighing on the Nikkei the most, after it posted a 76.5%

decline in its half-year net profit through August.

It was also the biggest percentage loser among the 225

Nikkei components.

Of the Nikkei stocks, 149 rose and 74 fell, with two flat.

(Reporting by Junko Fujita; Editing by Varun H K)