* Nikkei up 0.3 pct, Topix gains 0.1 pct
* Slipping yen, Wall Street gains prop up Nikkei
* SoftBank drops after ARM acquisition announcement
By Shinichi Saoshiro
TOKYO, July 19 (Reuters) - Japan's Nikkei share average edged up to a near six-week high on Tuesday, continuing to draw support from a weakening yen and Wall Street's rise to a fresh record overnight.
The Nikkei's gains, however, were limited by a decline in SoftBank Group Corp, which sank after the telecoms conglomerate said it was buying British chip designer ARM Holdings for $32 billion.
The Nikkei was up 0.3 percent at 16,546.82 after rising to 16,658.11, its highest since June 9.
The dollar rose to a 3-1/2 week high of 106.32 yen early on Tuesday, boding well for Japanese risk assets.
"It is mostly about the weak yen supporting stocks again - the equity market will continue tracking currencies closely," said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management.
Also lifting the Nikkei, the S&P 500 and the Dow reached record highs on Monday, lifted by upbeat Bank of America earnings and a tech sector rise fuelled by SoftBank's ARM Holdings deal.
SoftBank shares slid more than 10 percent on Tuesday to 3-1/2 month lows with the ARM acquisition, SoftBank's biggest takeover to date, adding to the heavily indebted company's burdens.
"The decline in SoftBank shares was as expected. IoT (internet of things) may be promising in the long term, but it might not lead to profit in the short term," Akino at Ichiyoshi Asset Management said.
ARM is poised to play a central role in the tech industry's shift to the IoT - a network of devices, vehicles and building sensors that collect and exchange data - a stated focus for SoftBank founder and CEO Masayoshi Son.
Other decliners in Tokyo included wig maker Aderans Company limited, which fell 7.7 percent after announcing a drop in sales and an operating loss in the March-May quarter.
Nintendo Co continued to ride high on support from the runaway success of the Pokemon GO mobile game, last trading up 9.2 percent.
Movie producer and distributor Toho Co Ltd advanced 5.1 percent after announcing a 15 percent operating profit increase in the March-May quarter thanks to a rise in revenues from publishing and animation.
The broader Topix edged up 0.1 percent to 1,318.57 and the JPX-Nikkei Index 400 stood effectively unchanged at 11,828.14. (Reporting by Shinichi Saoshiro; Editing by Eric Meijer)