(Updates with closing prices)

TOKYO, June 12 (Reuters) - Japan's Nikkei share average

fell on Thursday as a stronger yen prompted a sell-off of

exporters, while declines in U.S. stock futures hurt sentiment.

The Nikkei fell 0.7% to close at 38,173.09. The

broader Topix slipped 0.2%.

"Investors sold Japanese equities as they bet Wall Street

would be weak again later in the day, after seeing declines of

U.S. stock futures in Asia hours," said Seiichi Suzuki, chief

equity market analyst at Tokai Tokyo Intelligence Laboratory.

"But the Nikkei closed above the 38,000 level for a fourth

consecutive day, it seems that the index has cleared the first

hurdle for further gains."

The S&P 500 ended lower overnight, with investors spooked by

Middle East tensions, while a tame inflation report calmed

concerns around tariff-driven price pressures and traders

awaited more details on the China-U.S. trade talks.

S&P and Nasdaq futures each fell about 0.3%

in Asia trade.

The yen strengthened about 0.6% to trade at 143.67 per

dollar.

Uniqlo-brand owner Fast Retailing ( FRCOF ) dropped 2.6% to

drag the Nikkei the most.

Automakers declined as the yen gained, with Toyota Motor ( TM )

and Honda Motor ( HMC ) losing 1.5% and 0.9%,

respectively.

A stronger yen typically weighs on exporter shares by

reducing the value of overseas earnings when converted back into

Japanese currency.

The yen's strength this week has worked to keep the

Nikkei below 38,500, Mizuho Securities analyst Yutaka Miura

said.

"The yen's appreciation trend is expected to continue

moderately, which is likely to be a factor in limiting the

upside of Japan stocks," he said, predicting the Nikkei will

move in the 36,000-39,000 range this month.

Bucking the trend among exporters, Nintendo ( NTDOF ) rose

1.1% after the game maker said it had sold more than 3.5 million

Switch 2 units in the first four days after its launch, making

the console the company's fastest-selling gaming device to date.

Sumitomo Pharma ( DNPUF ) was far and away the Nikkei's top

percentage gainer, surging by its daily limit of 17% after Daiwa

Securities upgraded the stock.