(Updates to add spokesperson's confirmation of Abe being shot; updates index levels)

TOKYO, July 8 (Reuters) - Japan's Nikkei cut some of its early gains on Friday after Japan's former prime minister Shinzo Abe was shot, and according to a report, had been taken to hospital bleeding after collapsing while delivering a speech.

By 0354 GMT, the Nikkei index had risen 0.5% to 26,631.72, after climbing as much as 1.4% earlier in the session. The broader Topix index had risen 0.58% to 1,893.43.

"The impact (of this incident) on the stock market was limited as he is no longer a prime minister. Also his "Abenomics" economic stimulus has been taken over by the current administration," said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.

"Rather, the Nikkei had gained too much earlier in the session."

The benchmark index rose more than 1% earlier as heavyweight chip-related stocks tracked overnight Wall Street gains, after less hawkish comments from Federal Reserve officials eased concerns about U.S. recession. (Reporting by Junko Fujita; Editing by Rashmi Aich and Muralikumar Anantharaman)