TOKYO, Oct 20 (Reuters) - Japan's Nikkei share gauge surged to a record high on Monday after political negotiations appeared to put fiscal expansionist Sanae Takaichi on a clearer path to becoming the country's next prime minister.

The blue-chip Nikkei 225 Index jumped as much as 2.9% to about 49,000, an all-time intraday high. The broader Topix rose 1.9%.

The Nikkei hit record highs earlier this month after Takaichi won a run-off to lead the ruling Liberal Democratic Party. But a Diet vote to install her as premier was delayed after she failed to heal a rift with a long-time coalition partner.

After negotiations last week, the LDP and the Japan Innovation Party, known as Ishin, have broadly agreed to form a coalition, the Kyodo news agency reported on Sunday, with Ishin lawmakers pledging to support Takaichi as prime minister in parliament on Tuesday.

"The rest of the opposition appears unlikely to unite around an alternative candidate, clearing Takaichi's path to the prime ministership," Taylor Nugent, senior economist at National Australia Bank, said in a note.

There were 221 advancers on the Nikkei index against four decliners. The top two gainers on the gauge were industrial robot makers Yaskawa Electric 6506.T, up 7.3%, followed by Fanuc 6954.T, which soared 5.7%.

Companies involved in chips and artificial intelligence, sectors favoured for investment by Takaichi, were also big gainers, including SoftBank Group 9984.T and Lasertec 6920.T, which surged 3.4% and 5.2%, respectively.

The biggest loser was Ryohin Keikaku, which slid 4.4% after Kyodo said the Muji store operator suspended its online shop due to a cyberattack at a supplier.