TOKYO, June 10 (Reuters) - Japan's Nikkei share average

retreated on Wednesday as renewed Middle East tensions prompted

investors to rotate out of high-flying technology stocks

sensitive to energy prices.

The benchmark Nikkei 225 Index sank 1.89% to close

at 64,179.27, reversing course from a 2.1% surge in the prior

session. The broader Topix slid 1.25% to 3,847.60.

The United States launched strikes against Iran on Tuesday in

retaliation for the downing of a military helicopter, deepening

doubts over a potential peace deal.

Price pressures from the Gulf crisis caused Japanese wholesale

inflation to quicken to the fastest pace in three years, adding

upward pressure on domestic bond yields, data showed on

Wednesday.

"Declines are centred on AI- and semiconductor-related

shares, as heightened tensions in the Middle East and upward

pressure on domestic interest rates prompted investors to focus

more on relative valuations," said Wataru Akiyama, an equities

strategist at Nomura Securities. "As a result, the Topix's

decline is relatively limited compared with the (tech-heavy)

Nikkei."

There were 99 advancers on the Nikkei index against 126

decliners.

The largest losers were all tech-related stocks, including

Taiyo Yuden ( TYOYF ), down 12.9%, followed by Furukawa Electric ( FUWAF )

, 11.7% lower, and Sumitomo Electric, which

lost 11.7%.

Nintendo ( NTDOF ) was a standout among decliners, dropping 6.76%

after the video game giant's presentation of upcoming titles

disappointed investors.

The largest gainers on the Nikkei were developer Mitsubishi

Estate ( MITEF ), up 5.2%, followed by Tokyo Disneyland operator

Oriental Land ( OLCLF ), 4.3% higher, and Screen Holdings ( DINRF )

, which gained 4.2%.