(Updates with closing prices)

By Junko Fujita

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

closed at a record high for a fourth consecutive session on

Tuesday, as investors scooped up chip-related stocks ahead of

the U.S. Federal Reserve's crucial policy decision on Wednesday.

The Nikkei rose 0.3% to end the day at 44,902.27,

after it crossed the key 45,000 level for the first time to hit

a high of 45,055.38.

The market was closed on Monday for a public holiday.

The broader Topix rose 0.25% to finish at 3,168.36

on Tuesday.

The latest rally was supported by a robust corporate

outlook, which prompted analysts to raise target prices for some

local firms, and the expectations for a new prime minister

following the decision of the current premier, Shigeru Ishiba,

to resign, said Hikaru Yasuda, chief equity strategist at SMBC

Nikko Securities.

The firm outlook for the global economy, underpinned by

hopes of rate cuts by the Fed, also boosted the Nikkei, he said.

The Nikkei may finish the year at about the 45,000 level,

but the index could briefly retreat if expectations for the U.S.

rate cuts recede and Treasury yields rise, said Yasuda.

"The market expectations for the U.S. rate cuts are fairly

strong."

Shares of chip-testing equipment maker Advantest ( ADTTF )

recovered from early losses to rise 1.29%, providing the biggest

boost to the Nikkei.

Chip-making equipment giant Tokyo Electron ( TOELF ) advanced

1.9%.

Wafer maker Sumco ( SUMCF ) surged 9% to be the biggest

percentage gainer in the Nikkei. Chip-related Disco and

Resonac Holdings ( SHWDF ) jumped 8.23% and 6.13%, respectively.

On the other hand, Uniqlo brand owner Fast Retailing ( FRCOF )

fell 1.99% to become the biggest drag on the Nikkei.

Of the more than 1,600 stocks trading on the Tokyo Stock

Exchange's prime market, 66% stocks advanced, 30% fell, and 2%

traded flat.