TOKYO, Feb 17 (Reuters) - Japan's Nikkei share average

edged higher in choppy trade on Monday, boosted by financial

shares as gross domestic production rose more than expected

while automakers dragged following Friday's headlines of

possible U.S. tariffs aimed at imported cars.

The Nikkei was nearly flat by the midday break, up

0.04% at 39,164.87. The broader Topix rose 0.3% to sit

at 2,766.47.

Japan's economy expanded an annualised 2.8% in the

October-December quarter, government data showed on Monday,

backed by strong business spending and beating analyst

forecasts.

Rate-sensitive banks gained 0.9% and shorter-term

Japanese government bond yields marched higher after the data,

which likely supports the Bank of Japan's plan to keep hiking

interest rates and normalises monetary policy.

Megabanks Sumitomo Mitsui Financial Group and

Mitsubishi UFJ Financial Group ( MUFG ) added 2.1% and 1.5%,

respectively.

Elsewhere in the financial shares, insurance firm Dai-ichi

Life Holdings ( DCNSF ) jumped 5.2%.

Toyota Motor ( TM ), down 2%, was among major automakers

to slide after U.S. President Donald Trump said on Friday that

tariffs on automobiles would be coming as soon as April 2 but

gave no further details, keeping investors on edge.

"There are a lot of uncertainties, ...leaving just a vague

impression that tariffs will be increased," said Kazuo Kamitani,

an equities strategist at Nomura Securities.

The auto sector shed 1.8% to become the second

worst performer among the Tokyo Stock Exchange's 33 industry

sectors.

Wall Street offered Japanese shares little direction, with

U.S. stocks ending mixed on Friday. AI darling Nvidia ( NVDA )

climbed to lift the Nasdaq while both the Dow and S&P 500

declined.

U.S. markets will be closed on Monday for Presidents' Day.

Among Japan's heavyweight shares, chip-testing equipment

maker Advantest ( ADTTF ), which counts Nvidia ( NVDA ) among its

customers, gained 2.6% to give the Nikkei the biggest lift.

Peer Tokyo Electron ( TOELF ) stumbled 1.1% along with Uniqlo

parent firm Fast Retailing ( FRCOF ), down 0.2%, while Sony Group

Corp ( SONY ) was up 2.7%.