TOKYO, June 27 (Reuters) - Japan's Nikkei share average

jumped on Friday, as technology stocks tracked Wall Street's

robust finish overnight, putting it on pace to post its biggest

weekly gain in nine months.

The Nikkei rose 1.59% to 40,215.36 by the midday

break, crossing the 40,000-level for the first time since

January 27.

The index is poised to rise 4.7% for the week, its biggest

weekly gain since the week of September 23.

The broader Topix rose 1.3% to 2,841.08.

"Investors finally became willing to make long positions on

U.S. stocks, underpinned by positive news around easing tensions

in the Middle East and expectations for the interest rate cut,"

said Takamasa Ikeda, senior portfolio manager at GCI Asset

Management.

"Japanese equities mirrored the U.S. trend, led by stocks

which are popular among foreign investors," he said.

Wall Street closed higher on Thursday, nudging the S&P 500

and the Nasdaq nearer to record closing highs as the Israel-Iran

ceasefire continued to hold and a raft of economic indicators

appeared to support the case for the U.S. Federal Reserve

lowering borrowing costs this year.

In Japan, technology stocks rose, with chip-making equipment

maker Tokyo Electron ( TOELF ) jumping 5.53% to become the

biggest source of the Nikkei's gains. Technology start-up

investor SoftBank Group rose 2.8%.

Defence-related Kawasaki Heavy Industries ( KWHIF ) and

Mitsubishi Heavy Industries ( MHVYF ) rose 7.9% and 2.96%,

respectively, on expectations for more defence spending in

Japan.

Bucking the trend, chip-testing equipment maker Advantest ( ADTTF )

slipped 0.37% as investors took profits from its more

than 40% rise this month.

"Still, the rally on overall IT-related shares will

continue. The market is just relocating their targets," said

Ikeda.

The auto sector jumped 2.94% to become the top

performer among the Tokyo Stock Exchange's 33 industry

sub-indexes.

Energy explorers fell 1.27% to become the worst

percentage loser, with Inpex ( IPXHF ) losing 1.59%.