(Adds comments in paragraphs 3-4, updates stock prices)

By Junko Fujita

TOKYO, April 1 (Reuters) - Japan's Nikkei share average

rose nearly 4% on Wednesday, supported by hopes of a

de-escalation in the Middle East conflict after U.S. President

Donald Trump said the war with Iran could end in two to three

weeks.

The Nikkei climbed 3.87% to 53,039.72 by 0134 GMT,

starting April on a strong note after the benchmark logged its

worst month since the 2008 global financial crisis in March. The

broader Topix was up 3.67% at 3,626.33.

"There are still uncertainties over the fate of the war, but

at least the market is confident that it is moving towards the

end," said Shoichi Arisawa, general manager of the investment

research department at IwaiCosmo Securities.

"If oil prices stabilise, it would make it easier for local

firms to make forecasts for this fiscal year. They are set to

start disclosing their outlook from the end of this month."

Trump said the United States could end its military attacks

on Iran within two to three weeks and that Tehran did not have

to make a deal as a prerequisite for the conflict to wind down.

In Japan, chip and artificial intelligence-related shares

led the gains, with Advantest ( ADTTF ) and SoftBank Group

jumping 7.9% and 4.7%, respectively. Tokyo Electron ( TOELF )

rose 4.14%.

Memory chip maker Kioxia ( KXHCF ) surged 9.7% to become the

top percentage gainer on the Nikkei after its addition to the

index following a regular reshuffle.

Of the 225 components of the Nikkei, 217 stocks rose.

Bank shares led the Topix higher. Mitsubishi UFJ Financial

Group Sumitomo Mitsui Financial Group jumped

6% and 7%, respectively.

All but one of the Tokyo Stock Exchange's 33 industry

sub-indexes rose. The shipping sector slipped 0.94%.

Mitsui OSK Lines fell 3.9%, becoming the biggest

percentage loser on the Nikkei.

KDDI ( KDDIF ) fell 3% after the phone company said it

established an investigation committee for inappropriate

transactions by employees at subsidiary BIGLOBE.