TOKYO, Oct 24 (Reuters) - Japan's Nikkei share average

rose more than 1% on Friday, driven by index heavyweight tech

stocks, and was poised for an eighth weekly gain in nine on

expectations for fiscal dove Sanae Takaichi's new government.

The Nikkei climbed 1.35% to 49,299.12 by the midday

break after a sharp drop in the previous session. The broader

Topix rose 0.66% to 3,275.37.

For the week, the Nikkei has risen 3.6% and the Topix has

gained 3.3%.

"Investors scooped up technology stocks that became cheap in

the past several sessions," said Shuutarou Yasuda, a market

analyst at Tokai Tokyo Intelligence Laboratory.

The Nikkei hovered near a record high, driven by a rally in

AI-related stocks and buoyed by bets of economic stimulus from

Takaichi, who was elected as Japan's prime minister this week.

"Shares that move the Nikkei are rotating. Even as

AI-related shares decline, investors scoop up other shares that

are riding on the Takaichi trade," said Yasuda.

On Thursday, technology shares sent the Nikkei lower, while

investors snapped up defence stocks on bet that the new

government would increase defence spending.

On Friday, technology investor SoftBank Group rose

3.61% to become the biggest boost for the Nikkei. Chip-related

Advantest ( ADTTF ) and Tokyo Electron ( TOELF ) gained 3.8% and

2.35%, respectively.

Optical fibre maker Fujikura ( FKURF ), a gauge for

investments in AI data centres, rose 2.75%, while peer Furukawa

Electric ( FUWAF ) jumped 3.68%.

Nidec slumped 6.29% to become the biggest

percentage loser on the Nikkei, after the motor maker said it

would not pay an interim dividend and withdrew its earnings

forecast for the fiscal year ending March 2026.

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

Exchange's prime market, 51% rose, 43% fell, and 5% traded flat.

Wall Street advanced on Thursday amid a mixed batch of

corporate earnings and shifting geopolitical concerns.