Japan's Nikkei rides tech boost higher; BOJ in focus

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 Nikkei had risen 0.5% to 39,830.11 by the midday break. Earlier in the session, it briefly touched a two-week intraday high before paring some of its gains. The broader Topix rose 0.4% to 2,746.82.

Wall Street's indexes rose overnight on the back of streaming video provider Netflix's (NFLX) quarterly report and President Donald Trump's private-sector artificial intelligence infrastructure investment plan.

Japan's big-name technology shares led gains on the Nikkei, with AI-focused startup investor SoftBank Group rising 6% to provide the biggest boost to the benchmark.

Chip-testing equipment maker Advantest (ADTTF) climbed 0.9%, while Fujikura (FKURF), which manufactures material for data centres, added 2.8%.

But caution prevailed ahead of the BOJ's decision on Friday, with markets all but certain the central bank will raise short-term interest rates to 0.5% from 0.25%. Investors also looked for clarity on the Trump administration's tariff plans.

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 has sought out excuses to push higher but is lacking the catalyst to break out of its range," he 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."

Among individual stocks, Nidec (NNDNF) ticked up 3.4% ahead of the manufacturing giant's earnings results later in the day.

Chip-making equipment maker Disco sagged 1.8% ahead of its corporate revenue report.

Among other heavyweights, chip-making equipment giant Tokyo Electron (TOELF) slid 0.9% and Uniqlo parent Fast Retailing (FRCOF) edged down 0.2%, while staffing agency Recruit Holdings (RCRRF) rose 2.1%.

(Reporting by Brigid Riley; Editing by Subhranshu Sahu)