(Adds comments, updates with closing prices)

By Junko Fujita

TOKYO, June 19 (Reuters) - Japan's Nikkei share index

recorded its biggest weekly gain in nearly two years on Friday

before trimming early gains as worries grew that talks to end

the Iran war would be difficult.

The index has hit consecutive record highs this week and

recorded its seventh straight session of gains on Friday, as

optimism for AI-related shares grew. It posted a 7.9% rise for

the week, its sharpest weekly gain since August 2024.

On the day, the Nikkei closed 0.28% higher at

71,250.06, after spiking 1.3% to a record of 71,952.99.

The broader Topix fell 0.57% to 4,044.96.

Switzerland said U.S. talks with Iranian negotiators on a pact

to end the conflict in the Middle East would not take place on

Friday, as Vice President JD Vance dropped plans to travel to

Switzerland, adding to uncertainty over whether a lasting truce

can be found.

"The market expects more negotiations to come to end the war as

there is a 60-day period to reach a final agreement, but this

news came too suddenly and is an indication of a tough road

ahead," said Daisuke Hashizume, senior strategist at Daiwa

Securities.

"In addition, the market wanted to lock in profits for the

recent rally before the weekend, especially since the U.S.

market is due to be closed on Friday," he added.

On Friday, chip-related Advantest ( ADTTF ) and Kioxia ( KXHCF )

rose 4.75% and 12%, respectively.

Fujikura ( FKURF ) surged 15.69% to a daily limit high of 5,161

yen after the fibre-optic cable maker raised its annual net

profit forecast to 229 billion yen ($1.42 billion).

The AI data centre materials maker had initially guided for

a 156 billion yen profit, just shy of last year's 157.1 billion

yen.

"Fujikura ( FKURF ) raised its forecast at a time when the market

turned cautious about the outlook of fibre optic cable makers,"

Kazuaki Shimada, chief strategist at IwaiCosmo Securities, said.

Fujikura's ( FKURF ) peer Furukawa Electric ( FUWAF ) surged 15%.

Bank shares dragged the Topix lower, with Mitsubishi UFJ

Financial Group ( MUFG ) and Mizuho Financial Group ( MFG )

down 2.85% and 4.42%, respectively.

($1 = 161.1100 yen)