By Junko Fujita

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 .N225 was up 1.91% at 54,726.58, as of 0140 GMT, while the broader Topix .TOPX 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.N and American Airlines Group AAL.O, both sensitive to oil price movements, rebounded after recent weeks of losses. .N

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 6857.T jumped 4.95% and AI-technology investor SoftBank Group 9984.T rose 5%. Fibre optic cable maker Fujikura 5803.T rose 3.6%.

Shares of Mitsui OSK Lines 9104.T jumped 10% after Reuters reported that Elliott Investment Management has taken a "significant" stake in the Japanese shipping company.

Mitsubishi Materials 5711.T 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 9501.T jumped 12.85 after local media reported dozens of investment funds and companies, including KKR KKR.N and Bain Capital, are showing interest in investing in the utility.

Drugmaker Chugai Pharm 4519.T fell 4%, making it the largest percentage loser in the Nikkei.

(Reporting by Junko Fujita; Editing by Sherry Jacob-Phillips)

((junko.fujita@thomsonreuters.com;))