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

touched a record high early on Monday before erasing gains as

the Middle East crisis outweighed optimism over corporate

earnings and technology investment.

The benchmark Nikkei 225 Index edged 0.1% lower to

62,666.57, after jumping to an all-time high of 63,385.04

earlier in the session. The broader Topix climbed 0.23%

to 3,838.26.

Wall Street climbed to record highs on Friday, underpinned

by artificial intelligence-related stocks such as Nvidia ( NVDA )

and SanDisk ( SNDK ).

The optimism carried into Asia where Japanese chipmaker

Kioxia ( KXHCF ) jumped 6.8% on Monday after a 22% surge last

week.

Shares of video-game maker Konami Group ( KNAMF ) and Japan

Tobacco ( JAPAF ) were among top gainers in the Nikkei after both

companies posted strong earnings late on Friday.

Japanese shares erased early gains as U.S. President Donald

Trump rejected Iran's response to a proposal for peace talks,

dimming hopes for an end to the conflict that has driven up

global energy costs. Higher gasoline prices dragged U.S.

consumer sentiment to a record low in early May, data showed on

Friday.

"Capital investment in AI-related sectors is increasing, and

the view that strong demand for these companies will continue is

a positive factor for shares," said Wataru Akiyama, an equities

strategist at Nomura Securities.

"However, uncertainty surrounding the situation in the

Middle East has intensified, and economic data was also released

that raised concerns about consumer sentiment."

There were 139 advancers in the Nikkei index against 83

decliners. Nintendo ( NTDOF ) was among the biggest decliners,

down 6.5%, after the company hiked prices on its Switch 2

video-game console.