(Updates with closing prices)

By Junko Fujita

TOKYO, May 8 (Reuters) - Japan's Nikkei share average

retreated on Friday from a record high set in the last session,

as SoftBank Group declined and renewed U.S.-Iran hostilities

weighed on investor sentiment.

The Nikkei edged down 0.19% to 62,713.65. It jumped

5.6% on Thursday to close at a record high after crossing the

psychological level of 63,000 for the first time.

The index rose 5.4% in the holiday-shortened week.

The broader Topix slipped 0.29% on Friday to

3,829.48. It rose 2.7% for the week.

"Compared with the previous session's sharp gains, the

decline in today's market is marginal," said Hitoshi Asaoka,

chief strategist at Asset Management One.

Also weighing on the market was a rise in crude oil prices

after the United States and Iran exchanged fire and put a

month-long Middle East ceasefire in doubt.

Technology investor SoftBank Group fell 4.56% to

drag the Nikkei lower the most after the U.S.-listed shares of

Arm Holdings tumbled overnight on smartphone market

weakness and AI chip supply concerns.

Toyota Motor ( TM ) reversed early gains to fall 2.18%

after the automaker forecast a 20% decline in profit for the

current financial year on cost and supply uncertainties stemming

from the Middle East conflict.

Sony Group ( SONY ) ended 0.51% lower as the game and audio

equipment maker forecast annual sales at its gaming business

would fall 6% due to lower hardware sales.

Toyota ( TM ) has fallen 13% so far this year, while Sony ( SONY ) has lost

23%. The Topix has gained 12% during the same period.

Bank shares fell, with Mitsubishi UFJ Financial Group ( MUFG )

and Mizuho Financial Group ( MFG ) losing 1.97% and

2.24%, respectively.

Chip-testing equipment maker Advantest ( ADTTF ) reversed

early losses to rise 0.57%.

Silicon wafer maker Sumco ( SUMCF ) jumped 18% to become the

top percentage gainer on the Nikkei.

Of the more than 1,600 stocks trading on the Tokyo Stock

Exchange's prime market, 52% fell, 45% rose and 2% traded flat.