(Updates with closing prices)

By Junko Fujita

TOKYO, Nov 26 (Reuters) - Japan's Nikkei share average

surged on Wednesday, with tech stocks leading the charge in a

broad-based rally after Wall Street closed higher overnight on

increasing prospects of an interest rate cut in December.

The Nikkei closed 1.9% higher at 49,559.07, while

the broader Topix gained 2%.

Wall Street extended its rally on Tuesday as a spate of

economic data appeared to support the case for the U.S. Federal

Reserve to implement its third and final rate cut of the year in

December, while softness in the tech sector limited the Nasdaq's

gains.

"Expectations of more Fed rate cuts lifted U.S. stocks

overnight and that supported gains in the Japanese stock market

today," said Takamasa Ikeda, a senior portfolio manager at GCI

Asset Management.

In Japan, heavyweight technology stocks rose. Technology

investor SoftBank Group jumped 5.7% after plunging

nearly 20% in the previous two sessions.

Chip-testing equipment maker Advantest ( ADTTF ) climbed 2%

and Uniqlo brand owner Fast Retailing ( FRCOF ) gained 1.8%.

"With foreign investors leaving for the year-end holiday

season, the market will start focusing on smaller stocks and

that will keep the market supported," Ikeda said.

Hokkaido Electric Power ( HKEPF ) jumped 9.3% after a report

that Hokkaido Governor Naomichi Suzuki intended to allow the

restart of a reactor at its Tomari nuclear plant.

The report came after last week's news that a regional

governor had approved a partial restart of the

Kashiwazaki-Kariwa nuclear power plant of Tokyo Electric Power

Company Holdings ( TKECF ) , the operator of the Fukushima

Daiichi power plant that was destroyed by the March 2011

tsunami.

TEPCO ( TKECF ) shares rose 4.6%.

Kioxia ( KXHCF ) tanked nearly 15% after a report that buyout

firm Bain Capital planned to offload $2 billion worth of shares

in the memory chipmaker.