TOKYO, June 16 (Reuters) - Japan's Nikkei share average

rose on Monday even as the conflict between Israel and Iran

continued, with a weaker yen supporting sentiment.

As of 0155 GMT, the Nikkei was up 0.9% at 38,164.07,

while the broader Topix rose 0.54% to 2,772.46.

"Investors were less worried about geopolitical tensions in

the Middle East, and the market saw no need for additional

sell-offs," said Kentaro Hayashi, senior strategist at Daiwa

Securities.

"There is an optimism that the conflict will be contained

with countries like the United States and Russia stepping in,"

he added.

The Nikkei fell on Friday after Israel launched strikes

against Iran, and Wall Street ended sharply lower later in the

day.

On Monday, Advantest ( ADTTF ) jumped 8% to provide the

biggest boost to the Nikkei. The chip-making equipment maker,

one of the largest components of the Nikkei, tends to be bought

when the market bets the upside of the benchmark index.

Automakers rose on the back of a weaker yen, with Honda

Motor ( HMC ) and Nissan Motor ( NSANF ) rising 3.4% and 1%,

respectively. Toyota Motor ( TM ) was up 0.4%.

The yen fell at the end of the week as investors bought

safe-haven assets, such as the U.S. dollar.

The greenback was last up 0.17% to 144.325 against the

Japanese yen.

A weaker Japanese currency tends to boost shares of

exporters, as it increases the value of overseas profits in yen

terms when firms repatriate the money to Japan.

Nippon Steel ( NISTF ) rose 2.4% after U.S President Donald

Trump approved its $14.9 billion bid for U.S. Steel on

Friday.

The sector for steel makers rose 1.77% to become

the top performer among the Tokyo Stock Exchange's (TSE) 33

industry sub-indexes.

The shipping sector rose 1.66% on expectations

for rising freight rates amid the Middle East conflict. Kawasaki

Kisen rose 2.4%.

Of more than 1,600 stocks trading on the TSE's prime market,

66% rose and 28% fell with 4% trading flat.