TOKYO, Jan 23 (Reuters) - Japan's Nikkei share average

rose on Thursday as SoftBank Group and other technology stocks

tracked their U.S. peers higher for a second straight session,

while investors awaited the Bank of Japan's monetary policy

decision due on Friday.

The Nikkei had risen 0.5% to 39,830.11 by the midday

break. Earlier in the session, it briefly touched a two-week

intraday high before paring some of its gains. The broader Topix

rose 0.4% to 2,746.82.

Wall Street's indexes rose overnight on the back of

streaming video provider Netflix's ( NFLX ) quarterly report and

President Donald Trump's private-sector artificial intelligence

infrastructure investment plan.

Japan's big-name technology shares led gains on the Nikkei,

with AI-focused startup investor SoftBank Group rising

6% to provide the biggest boost to the benchmark.

Chip-testing equipment maker Advantest ( ADTTF ) climbed

0.9%, while Fujikura ( FKURF ), which manufactures material for

data centres, added 2.8%.

But caution prevailed ahead of the BOJ's decision on Friday,

with markets all but certain the central bank will raise

short-term interest rates to 0.5% from 0.25%. Investors also

looked for clarity on the Trump administration's tariff plans.

The market has seen a "restrained" start to the year as

investors parse out the U.S. economic picture and BOJ guidance,

said Kyle Rodda, senior financial market analyst at Capital.com.

"The Nikkei has sought out excuses to push higher but is

lacking the catalyst to break out of its range," he said.

"Relatively attractive valuations and solid growth

conditions will eventually allow this (climb higher) to unfold,

assuming the U.S. inflation story and currency volatility

remains stable."

Among individual stocks, Nidec ( NNDNF ) ticked up 3.4% ahead

of the manufacturing giant's earnings results later in the day.

Chip-making equipment maker Disco sagged 1.8% ahead

of its corporate revenue report.

Among other heavyweights, chip-making equipment giant Tokyo

Electron ( TOELF ) slid 0.9% and Uniqlo parent Fast Retailing ( FRCOF )

edged down 0.2%, while staffing agency Recruit Holdings ( RCRRF )

rose 2.1%.