(Recasts, updates prices, adds analyst comment)

By Satoshi Sugiyama

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

slipped on Thursday as investors assessed developments in the

U.S.-Iran conflict, but clawed back losses after Washington

confirmed that its overnight strikes on multiple targets in Iran

had concluded.

The Nikkei ended morning session down 1.5% at

63,239.52, after earlier plunging nearly 3% andbriefly slipping

below the 63,000 level for the first time since May 22. The

broader Topix slid 1.5% to 3,788.46.

Market sentiment improved after the U.S. military's Central

Command announced the completion of its strikes in Iran.

The strikes came just hours after U.S. President Donald

Trump warned of further attacks if a peace agreement was not

reached.

"The market opened with losses almost across the board, as

selling initially gathered pace. But 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, also narrowed some losses. Tech

investment conglomerate SoftBank Group fell 3.9% after

tumbling as much as 7.5%.

Shares of Fujikura ( FKURF ), which produces optical fibre

used in AI data centres, lost nearly 4%, after dropping as much

as 7.3% earlier in the session. Semiconductor testing equipment

maker Advantest ( ADTTF ) shed 2.4%.

Market breadth remained weak, with 173 stocks falling

against 52 gainers in the Nikkei.

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

emerged as the top performer among the blue-chip

stocks, rising 12%. It was followed by seasonings maker

Ajinomoto ( AJINF ), up 7.6%, and camera maker Nikon ( NINOF ),

which advanced 4%.