TOKYO, March 18 (Reuters) - Japan's Nikkei share average

climbed nearly 2% on Wednesday, led by chip and artificial

intelligence-related stocks, as concerns over the economic

impact of surging oil prices subsided.

The Nikkei was up 1.91% at 54,726.58, as of 0140

GMT, while the broader Topix rose 1.66% to 3,687.35.

"The equity market has been closely linked with oil prices.

Today, the market eased excessive worries about the outlook of

oil prices and scooped up heavyweight technology stocks," said

Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence

Laboratory.

The Nikkei's gains were further supported by an overnight

rally on Wall Street, Yasuda said.

Shares of Delta Air Lines ( DAL ) and American Airlines

Group ( AAL ), both sensitive to oil price movements, rebounded

after recent weeks of losses.

Crude oil prices remain close to $100 a barrel amid worries

about extended supply disruptions caused by the closure of the

Strait of Hormuz shipping route.

Oil prices slightly fell in Asian trade after sources citing

American Petroleum Institute figures showed an increase in U.S.

crude inventories.

In Japan, chip-testing equipment maker Advantest ( ADTTF )

jumped 4.95% and AI-technology investor SoftBank Group

rose 5%. Fibre optic cable maker Fujikura ( FKURF ) rose 3.6%.

Shares of Mitsui OSK Lines jumped 10% after Reuters

reported that Elliott Investment Management has taken a

"significant" stake in the Japanese shipping company.

Mitsubishi Materials ( MIMTF ) jumped 14% after local media

reported the maker copper products will participate in a

project between Japan and the United States to develop rare

earths, which will be agreed at a summit meeting of the two

nations.

Japan Prime Minister Sanae Takaichi is due to meet U.S.

President Donald Trump in Washington D.C. at a leaders' summit

on March 19.

Tokyo Electric Power ( TKECF ) jumped 12.85 after local media

reported dozens of investment funds and companies, including KKR

and Bain Capital, are showing interest in investing in

the utility.

Drugmaker Chugai Pharm fell 4%, making it the

largest percentage loser in the Nikkei.