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

on Monday, following up on AI and chip-linked stocks' gains on

Wall Street, with uncertainties surrounding the Middle East

conflict capping gains.

The Nikkei was up 2% at 66,927.61 as of 0126 GMT and the

broader Topix edged up 0.44% to 4,092.93.

"Gains of chip-related stocks supported the Nikkei. Easing

bets for the U.S. Federal Reserve's rate hike were the driver,"

said Daisuke Hashizume, senior strategist at Daiwa Securities.

U.S. stocks advanced on Friday, with the S&P closing at a record

high to cap off a strong week of gains for the major indexes,

after data showed the U.S. economy unexpectedly shed jobs last

month and dampened expectations the Fed would raise interest

rates at its September meeting.

In the Middle East, uncertainty continued over the reopening of

the Strait of Hormuz as Iran said a deal with Oman defining new

shipping lanes was in its final stages, but the U.S. must still

meet other conditions.

In Japan, chip-related Advantest ( ADTTF ) and Tokyo Electron ( TOELF )

rose 5.3% and 3.4%, respectively.

Fujikura ( FKURF ) was up 7%, extending a sharp rally after

the fibre-optic cable maker raised its annual net profit

forecast on Friday.

Ibiden ( IBIDF ), a supplier to AI bellwether Nvidia ( NVDA )

, rose 6.28%.

Shares of Recruit Holdings ( RCRRF ) were untraded with a glut of

buy orders after the staffing agency's revised annual forecasts

beat market expectations. The shares were bid at a daily limit

high of 16,165, or 22.79% higher from the previous session's

close.

Investors stayed away from active trade as Japan is in the

midst of the "obon" summer holidays and toward the end of the

week, the main indexes will show little direction on the dearth

of market-moving cues, Daiwa's Hashizume said.

Uniqlo-brand owner Fast Retailing ( FRCOF ) edged 0.23%

lower.

Mitsui Kinzoku, a maker of materials for lithium-ion

batteries, tanked 17% after its revised annual net profit

forecast failed to meet market expectations.