TOKYO, May 8 (Reuters) - Japan's Nikkei share average

edged up on Thursday as chip-related shares tracked a rally in

U.S. semiconductor stocks, while NTT Data ( NTTDF ) was set for a 17% jump

following a takeover report.

The Nikkei added 0.23% to 36,863.15 by the midday

break, after breaking a seven-day winning run on Wednesday.

The broader Topix fell 0.18% to 2,691.36 and was

poised to snap a nine-session rising streak.

"The two main indexes have recouped their losses quickly

(since U.S. President Donald Trump's tariff announcement last

month), but the speed of the recovery has slowed down," said

Seiichi Suzuki, chief equity market analyst at Tokai Tokyo

Intelligence Laboratory.

"Investors have become cautious as the Nikkei approached the

psychological level of 37,000."

Overnight, U.S. stocks rallied close to the closing bell as

chipmakers jumped after Bloomberg reported Trump's

administration plans to rescind artificial intelligence chip

curbs.

A U.S. Commerce Department spokesperson subsequently

confirmed the report. The PHLX semiconductor index ended

1.7% higher after losing as much as 1% on the day.

Japan's chip-testing equipment maker Advantest ( ADTTF ) rose

2.82% and chip-making equipment maker Tokyo Electron ( TOELF )

gained 1.32%.

NTT Data ( NTTDF ) was untraded with a glut of buy orders

after the Nikkei newspaper reported telecom giant NTT

plans to launch a tender offer worth up to 3 trillion yen

($20.88 billion) to buy the remaining shares in NTT Data ( NTTDF ).

NTT Data ( NTTDF ), which provides data networks, was bid at the daily

upper limit of 3,492 yen, a 17% jump on Wednesday's close of

2,991.5 yen.

With the Nikkei average futures crossing the 37,000

level, the bid on NTT Data ( NTTDF ) may continue through the next

session, Suzuki said.

Drug maker Torii Pharmaceutical ( TRXPF ) surged 13.62% after

peer Shionogi ( SGIOF ) said it would acquire Torii, a subsidiary

of Japan Tobacco ( JAPAF ), for more than 150 billion yen.

Shipping firm Mitsui OSK Lines fell 3.2% to become

the biggest percentage loser on the Nikkei, followed by

technology investor SoftBank Group, which lost 2.36%.

($1 = 143.6600 yen)