(Updates with closing prices)

By Satoshi Sugiyama

TOKYO, April 30 (Reuters) - Japan's Nikkei share average

fell on Thursday as a surge in oil prices, driven by reports of

possible U.S. military action to break the Iran stalemate, and

mixed corporate earnings dampened investor appetite.

The Nikkei 225 Index fell 1.1% to close at 59,284.92

but posted a monthly gain of 16.1%, its strongest since October

2025. The broader Topix lost 1.2% to 3,727.21.

"Amid concerns over the situation in the Middle East and

with earnings reports set to be released soon, the market is in

a wait-and-see mood," said Naoki Fujiwara, senior fund manager

at Shinkin Asset Management.

"Since this falls between holiday periods, buying interest

is not especially strong, and because price levels remain high,

profit-taking is emerging."

U.S. President Donald Trump will receive a briefing later in

the day from the leader of the U.S. Central Command on new plans

for potential military action against Iran, Axios reported.

Brent crude futures for June added $6.81, or 5.8%,

to $124.84 a barrel as of 0527 GMT, after gaining 6.1% on

Wednesday.

AI-related shares, which have helped lift the Nikkei gauge

above the 60,000 levelearlier this week, mostly retreated.

Chip-testing equipment maker Advantest ( ADTTF ) dropped 5%,

while chipmaking equipment maker Tokyo Electron slipped

1.7%.

IT services firm Fujitsu ( FJTSF ) was the biggest percentage

loser, tumbling as much as 15.2% - its steepest drop in 11 years

- after issuing an earnings outlook that missed analysts'

estimate.

Shares of Oriental Land ( OLCLF ) dropped 10.1% after the

Tokyo Disney Resort operator warned of a decline in operating

profit this year due to higher labour costs and repair expenses.

Telecom and IT solutions provider NEC shed 7.7%.

Bucking the broader decline, electronic components maker TDK

jumped about 8% to a record high after forecasting a

15% rise in net profit for the current financial year, beating

estimates.

Murata Manufacturing ( MRAAF ) also hit a record high,

climbing as much as 8.8%, after projecting a 25% increase in

2026 net profit, driven by growing demand from data centres.

Renesas Electronics ( RNECF ), a microcontroller and

automotive chips maker, advanced 10.3%.