(Updates with closing prices)

By Satoshi Sugiyama

TOKYO, June 11 (Reuters) - Japan's Nikkei share average

ended almost unchanged on Thursday, as investors assessed

developments in the Middle East, recouping early losses after

Washington confirmed that its overnight strikes on Iran had

concluded.

The Nikkei closed 0.06% higher at 64,217.27,

recovering from an early selloff of nearly 3%, although market

breadth remained weak, with many stocks in negative territory.

The broader Topix slid 0.45% to 3,830.35.

"There still appears to be a lack of drivers strong enough

to attract meaningful fresh inflows, and investors remain

somewhat cautious, suggesting the market is not yet ready for a

decisive move higher, even if some buying has started to

appear," said Naoto Takahashi, an analyst at Aizawa Securities.

Market sentiment improved after the U.S. announced the

completion of its strikes in Iran that came just hours after

U.S. President Donald Trump warned of further attacks if a peace

agreement was not reached.

"... After the U.S. military declared early on that its attack

had ended, investors took it as a signal urging Iran to move

quickly toward an agreement," said Shuji Hosoi, senior

strategist at Daiwa Securities.

"That fostered the view that even military action was being

used as leverage in pursuit of a negotiated settlement, fuelling

speculation that a deal with Iran may not be far off."

AI-related shares, which had dragged the Nikkei lower

earlier in the session, narrowed some losses. Tech investment

conglomerate SoftBank Group fell 1.4% after tumbling as

much as 7.5%.

Fujikura ( FKURF ), which produces optical fibre used in AI

data centres, lost 1.2%, after dropping as much as 7.3% earlier

in the session. Semiconductor testing equipment maker Advantest ( ADTTF )

shed 0.2%.

On the Nikkei, 142 stocks fell against 81 gainers.

Defying the broader downturn, printing firm TOPPAN Holdings ( TONPF )

emerged as the top performer among the blue-chip

stocks, rising 15.7%, the biggest percentage gain since October

2008. It was followed by seasonings maker Ajinomoto ( AJINF ), up

7.5%, and memory-chip maker Kioxia ( KXHCF ) gaining 7%.