TOKYO, Feb 7 (Reuters) - Japan's Nikkei share average traded lower on Wednesday, dragged by heavyweight technology stocks, although sharp gains in Toyota Motor and Mitsubishi Corp stocks after the companies announced robust outlook and shareholder returns capped losses.

By 0222 GMT, the Nikkei had fallen 0.1% to 36,112.53, recovering from a 0.7% fall earlier in the session.

The broader Topix was up 0.39% to 2.549.13.

"Investors were taking profits in outperformers and buying cheaper shares as seen in today's chip-related stocks, which tracked losses in the U.S. chip shares index," said Naoki Fujiwara, a senior fund manager at Shinkin Asset Management.

"But overall the market sentiment was firm because there were more rising stocks than falling ones."

All three Wall Street major indexes rose overnight but the tech-heavy Nasdaq inched up only 0.07%, with the Philadelphia SE Semiconductor index ending down 1.14%.

In Japan, Air-conditioning maker Daikin Industries tanked 8.25%. Chip-making equipment maker Tokyo Electron lost 1.1% and chip-testing making equipment maker Advantest was down 0.02%.

KDDI fell 2.37% after the mobile carrier announced a 500 billion yen ($3.38 billion) tender offer for the convenience store chain Lawson jointly with Mitsubishi Corp.

Shares of Lawson jumped 15.51%.

Mitsubishi surged 9.45% after the trading firm said it would spend as much as 500 billion yen to buy back up to 10% of its shares.

Peers Itochu and Mitsui & Co rose 2.25% and 1.95%, respectively, lifting the wholesales index 2.9%.

Toyota Motor climbed 4.69% after the automaker raised its full-year operating profit forecast by nearly 9%. Auto and auto parts makers jumped 3.64% to become the best performer among the Tokyo Stock Exchange's (TSE) 33 industry sub-indexes.

Of more than 1,600 shares on the TSE's prime market, 49% rose, 44% fell and 5% were flat. ($1 = 147.9100 yen)

(Reporting by Junko Fujita; Editing by Rashmi Aich)