(Updates for market close)

By Brigid Riley

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 tech boost helped propel the Nikkei to a fresh

two-week closing high, ending the day up 0.8% at 39,958.87 after

briefly rising above the key 40,000-point level.

The broader Topix finished up 0.5% at 2,751.74.

AI-focused startup investor SoftBank Group jumped

5.1% to provide the biggest boost to the benchmark.

The S&P 500 hit an intraday record peak on streaming video

provider Netflix's ( NFLX ) quarterly report and President

Donald Trump's private-sector artificial intelligence

infrastructure investment plan.

Japan's chip-testing equipment maker Advantest ( ADTTF )

climbed 2.4%, while Fujikura ( FKURF ), which manufactures

material for data centres, jumped 4.8%.

The Nikkei's fourth-straight day of gains comes ahead of the

BOJ's decision on Friday, with markets all but certain the

central bank will raise short-term interest rates.

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 rose as high as 40,288.80 at the beginning of the

year but slipped to a more than one-month low last week.

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

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

Manufacturing giant Nidec ( NNDNF ) rose 3.8%, while

chip-making equipment maker Disco sagged 2.5%. The two

firms publish corporate revenue reports on Thursday as Japan's

earnings season gets underway.

Among other heavyweights, chip-making equipment giant Tokyo

Electron ( TOELF ) slid 0.2%, while Uniqlo parent Fast Retailing ( FRCOF )

gained 1% and TDK rose 3%.