(Updates with closing prices)

By Satoshi Sugiyama

TOKYO, March 24 (Reuters) - Japanese shares pared gains

on Tuesday as investors remained unconvinced that U.S. President

Donald Trump's comments about holding off on targeting Iran's

energy infrastructure would lead to a breakthrough in the Middle

East conflict.

The Nikkei rose 1.4% to close at 52,252.28 after

rising as much as 2.3% earlier in the session. The broader Topix

climbed 2.1% to 3,559.67 after jumping as much as

2.6%.

Trump postponed a threat to bomb Iran's power grid because

of what he described as "productive talks" with unidentified

Iranian officials. Iran denied that it had engaged in

negotiations with the U.S., pushing oil prices higher, and

launched multiple waves of missiles at Israel.

"Few investors seem to believe the remarks will help calm

the situation around the Strait of Hormuz, and many see them as

little more than a temporary delaying tactic," said Tomoichiro

Kubota, senior market analyst at Matsui Securities. "So when the

market rises, they are quick to take profits."

The Nikkei benchmark gauge has lost about 11% since its

February 27 close, before the war erupted.

On Tuesday, there were 209 advancers on the Nikkei index

against 16 decliners.

Pharmaceutical stocks underpinned the Nikkei's gains, with

Sumitomo Pharma ( DNPUF ) rising 7.4%. Energy-related shares also

rose, including Eneos ( JXHGF ), Japan's largest oil refiner,

which advanced 4.1%.

Tokio Marine Holdings ( TKOMF ) closed up 17.1% at its daily

limit high of 6,857 yen after Berkshire Hathaway ( BRK/A ) said

it was buying a 2.49% stake in the Japanese insurer for about

$1.8 billion as part of a new strategic partnership.

The Nikkei's biggest percentage decliner was

Nintendo ( NTDOF ), down 4.8%, after Bloomberg reported that the

game maker would slash Switch 2 output by more than 30% this

quarter due to weak U.S. sales. Japan Steel Works ( JPSWF ) also

lost 3.3%, while Mitsubishi Heavy Industries ( MHVYF ) declined

1.9%.