(Updates with closing prices)

By Junko Fujita

TOKYO, Feb 3 (Reuters) - Japan's Nikkei share average

climbed nearly 4% to close at a record high on Tuesday,

rebounding from a decline posted in the previous session, after

the sell-off of precious metals paused.

The ‌Nikkei rose 3.92% to 54,720.66 in its biggest

daily gain since October 25.

On Monday, the ​index erased most of its early gains to

close 1.25% lower ‍as prices of precious metals slumped.

The broader Topix ⁠jumped 3.1% to ⁠3,645.84 on

Tuesday.

"The market was worried about the impact of the sell-off of

the precious metals ‌in the previous session on other ​assets. But

the stocks in the U.S. and Europe were strong overnight," said

Shuutarou Yasuda, a market analyst at ⁠Tokai Tokyo Intelligence

Laboratory.

"That prompted investors ‍to scoop ​up the stocks in today's

session," he said.

The market also welcomed robust U.S. factory activity data

as a sign of the economy's ‍strength, which also became a cue for

the rally in Japanese stocks, said Yasuda.

The S&P 500 closed higher on Monday, lifted by gains

in chipmakers and other companies related to artificial

intelligence, while smaller companies also rose sharply.

The other two main indexes, the Nasdaq ​and Dow ‍Jones

Industrial Average, also edged higher.

In Japan, chip-testing equipment maker Advantest ( ADTTF )

jumped 7.1% and chip-making equipment maker Tokyo Electron ( TOELF )

climbed nearly 4.79%.

Optical ​fibre cable maker Fujikura ( FKURF ) jumped 9.67%.

Shares of TDK surged 11.43% after the electronic

component maker raised its annual profit forecast for the year

to March.

Yamaha Motor ( YAMHF ) fell 10% to become the worst

percentage loser on the Nikkei after the motorcycle maker cut

its annual profit forecast for the year to December.

Of ​the 225 stocks on the Nikkei, only 16 stocks fell.

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

Exchange's prime market, 84% rose and 13% fell, while ‍2% traded

flat.