TOKYO, March 5 (Reuters) - Japan's Nikkei share average

nudged higher in volatile trading on Wednesday, supported by a

rebound in technology giants, even as concerns over a potential

trade war following U.S. tariffs and its impact on the global

economy stifled risk appetite.

The Nikkei edged 0.1% higher to 37,356.44 by the

midday break, while the broader Topix was flat at

2,709.86.

U.S. stocks ended lower on Tuesday, with the Nasdaq veering

near correction territory, as trade tensions escalated following

U.S. President Donald Trump's new levies on Canada, Mexico and

China.

Market players were still holding out hope that tariff pains

might be mitigated after U.S. Commerce Secretary Howard Lutnick

told Fox Business that Trump will reach a middle ground with

Canada and Mexico on tariffs. The news helped limit selling of

Japanese equities.

Amid the selloff on Wall Street overnight, U.S. chip giant

Nvidia ( NVDA ) and other major technology companies rebounded

modestly, offering some support for their Japanese peers.

Chip-testing equipment maker Advantest ( ADTTF ), an Nvidia ( NVDA )

supplier, climbed nearly 2% on Wednesday, and AI-focused startup

investor SoftBank Group rose 0.6% to lift the overall

Nikkei. Shares of Tokyo Electron ( TOELF ) slid 0.3%.

Automakers made a strong comeback as the yen weakened

slightly after reaching a three-month high against the dollar in

the previous session. Toyota Motor led the gains, rising 2.9%

earlier in the day.

Still, the uncertainty over the outlook for tariffs and

their impact on the U.S. and global economy are "exacerbating

investors' anxieties and risk perception," said Nomura

Securities strategist Maki Sawada.

"In this environment, it's difficult for buying to

increase significantly," she said.

Trump's first address to Congress since his return to the

White House and remarks by Bank of Japan Deputy Governor

Shinichi Uchida also kept investors on guard.

Among other Nikkei heavyweights, Uniqlo parent firm Fast

Retailing ( FRCOF ) climbed 1.3%, while video game developer

Konami Group ( KNAMF ) slumped 3.5% and robot maker Fanuc ( FANUF )

gave up 1.5%.