(Updates with prices as of 0630 GMT)

By Brigid Riley

TOKYO, Nov 12 (Reuters) - Japan's Nikkei share average

gave up early gains on Tuesday to close lower, as

semiconductor-related shares extended declines in the afternoon

session.

The Nikkei closed down 0.4% at 39,376.09, while the

broader Topix finished up 0.07% at 2,741.52.

Chip-related shares followed their U.S. peers lower and were

the biggest drag on the benchmark Nikkei. The Philadelphia SE

Semiconductor index declined 2.5% on Monday.

Investors were weighing a Reuters report published over the

weekend that the United States had ordered Taiwan Semiconductor

Manufacturing Co ( TSM ) to halt shipments of advanced chips

to Chinese customers.

Nikkei heavyweights Advantest ( ADTTF ) and Tokyo Electron ( TOELF )

slid 3.2% and 2.8%, respectively, while Lasertec ( LSRCF )

fell 4.4%.

AI-focused startup investor SoftBank Group shed

1.1%. After market hours, the company posted quarterly earnings

above expectations.

Tokyo Electron ( TOELF ) also reported its financial results after the

market close.

"The Nikkei is not exactly overheated in terms of technical

indicators, but given its solid momentum over the past few days,

I think we might be seeing some moves to secure profits," said

Nomura Securities strategist Maki Sawada.

The Nikkei briefly rose as high as 39,866.72 before closing

lower for the first time in three sessions. The index had closed

at its highest in three weeks last Wednesday.

Meanwhile, a weaker yen lent some support to Japan's

export-related shares. Automakers rallied, with Toyota Motor ( TM )

and Suzuki Motor ( SZKMF ) both up about 2.4%.

The transport equipment sector, which includes

Toyota Motor ( TM ) and other automakers, was the best performing

sector with a 1.9% rise.

Among other stocks, Recruit Holdings ( RCRRF ) gained 3.8%

after the staffing agency revised upward its profit forecast on

Monday.

Nissan Motor ( NSANF ) jumped as much as 20.6% after a filing

showed an entity related to activist investor Effissimo Capital

Management had taken a stake in the struggling automaker.

(Reporting by Brigid Riley; Editing by Sonia Cheema and

Subhranshu Sahu)