TOKYO, June 25 (Reuters) - Japan's Nikkei share average

inched lower on Wednesday, weighed down by declines in U.S.

stock futures, as investors awaited clarity on whether a fragile

ceasefire between Israel and Iran would hold.

The Nikkei was down 0.1% at 38,750.47 by the midday

break, after flitting between modest gains and losses.

The broader Topix fell 0.34% to 2,771.93.

"The market had already factored in the gains of U.S. stocks

last night subsequent to a ceasefire announcement," said Naoki

Fujiwara, senior fund manager at Shinkin Asset Management.

The Nikkei snapped a three-day losing streak to end higher

on Tuesday after U.S. President Donald Trump announced the

ceasefire agreement late Monday.

The truce appeared fragile: Both Israel and Iran took hours

to acknowledge they had accepted the ceasefire and accused each

other of violating it.

Still, investors viewed the ceasefire rhetoric as a sign of

de-escalating tensions, pushing the U.S. stocks up more than 1%

overnight.

But S&P and Nasdaq futures slipped during

Asian hours, which the market interpreted as a sign of potential

declines on Wall Street later in the day, said Kentaro Hayashi,

senior strategist at Daiwa Securities.

"Investor sentiment was also weighed by the stability of

Japanese politics ahead of the upper house election (next

month), and the development of ongoing trade talks. If the U.S.

Federal Reserve cuts interest rates, that could lift the yen

higher," he added.

Technology investor SoftBank Group fell 3.18% to

drag the Nikkei the most. Medical equipment maker Olympus

tanked 10.99%.

Shares of Toyota Motor ( TM ) lost 1.41%.

Chip-related stocks advanced, tracking a 3.8% gain in the

U.S. Philadelphia Semiconductor Index. Tokyo Electron ( TOELF )

climbed 2.34% and Advantest ( ADTTF ) added 1.31%.

Of more than 1,600 stocks trading on the Tokyo Stock

Exchange's prime market, 27% rose and 68% dropped, while 4%

traded flat.