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 was down 1.1% at

64,700.89, reversing course from a 2.1% surge in the prior

session. The broader Topix lost 0.69% to 3,869.34.

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.

Data showed on Wednesday that 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.

"Declines are centered 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 Nikkei."

There were 96 advancers in the Nikkei index against 128

decliners. The largest losers were all tech-related stocks,

including Sumco ( SUMCF ), down 9%, followed by SoftBank Group

, 8.9% lower, and Sumitomo Electric, which

retreated 8.1%.

Nintendo ( NTDOF ) was a standout among decliners, dropping

7.8% after the video game giant's presentation of upcoming

titles disappointed investors.