(Updates with closing prices, adds analyst comment in paragraph

4)

By Satoshi Sugiyama

TOKYO, March 27 (Reuters) - Japan's Nikkei share average

pared some of its earlier losses but still ended slightly lower

on Friday, as dividend-buying only partially offset the drag

from concerns over the U.S.-Israeli war with Iran.

The Nikkei eased 0.4% to close at 53,373.07, after

sliding as much as 2% earlier in the session, and snapped a

three-week losing run to finish this week little changed.

The broader Topix firmed 0.2% to 3,649.69.

"This is a period when buying tends to come in easily from a

supply-demand perspective as today is the last trading day to

capture dividend rights," said Tomoichiro Kubota, senior market

analyst at Matsui Securities.

Some investors are also hoping that U.S. President Donald

Trump will ease pressure on Iran after the Nasdaq confirmed

correction territory and the yield on the 10-year U.S. Treasury

rose to 4.4%, Kubota added.

Japan remains highly exposed to spikes in crude oil prices

due to its heavy reliance on imported energy. The closure of the

Strait of Hormuz weighs heavily on the countrythat gets roughly

90% of its oil shipments via the vital chokepoint.

Meanwhile, Trump said he will extend the deadline to April 6

for Iran to make a deal to end the war or face the destruction

of its energy plants, saying talks were going "very well."

Tehran, however, dismissed Washington's proposal to end the

conflict as "one-sided and unfair," clouding prospects for

de-escalation.

On the Nikkei index, 148 stocks advanced and 76 declined.

The benchmark's biggest percentage gainers were medical

endoscopes and optics company Olympus, which climbed

6.8%, followed by Sumitomo Pharma ( DNPUF ), which added 6.6%.

On the flip side, automaker Hino Motors fell 5.4%, followed

by air-conditioning systems leader Daikin Industries ( DKILF ),

which lost 5.2%.

Chip component maker Rohm ( ROHCF ) shed 4.1% and Mitsubishi

Electric ( MIELF ) dipped 2.2% after the Nikkei reported the two

firms and Toshiba would begin talks ​to integrate their power

semiconductor businesses to form what would become the world's

second-largest ‌power chip group.

(Reporting by Satoshi Sugiyama; Editing by Sumana Nandy and

Subhranshu Sahu)