(Updates with closing prices)

By Kevin Buckland

TOKYO, June 3 (Reuters) - Japan's Nikkei share average

dropped in the final minute of trading on Tuesday, extending its

losing streak to a third day, as traders turned increasingly

nervous about global trade tensions.

The Nikkei ended the day 0.06% lower at 37,446.81,

with 122 of its 225 components declining, 98 rising and five

ending flat.

The broader Topix slipped 0.22%.

Japan's safe-haven yen provided a headwind after

strengthening as far as a one-week high of 142.40 per dollar

early on Tuesday.

A firmer currency reduces the value of overseas revenues for

Japan's exporters.

Automakers underperformed, with Suzuki Motor ( SZKMF )

tumbling 4.51% to be the Nikkei's biggest percentage decliner.

Honda ( HMC ) lost 0.94%.

Toyota Motor ( TM ) declined 0.59%, showing little

reaction to domestic media reports that Toyota Industries ( TYIDF )

would accept its $42 billion takeover bid. Toyota

Industries ( TYIDF ) rose 0.77%.

U.S. President Donald Trump's administration wants countries

to submit their best offer on trade negotiations by Wednesday,

as officials seek to accelerate talks with multiple partners

ahead of a self-imposed deadline in just five weeks, Reuters

reported.

Trump and China's President Xi Jinping will probably

speak this week, White House Press Secretary Karoline Leavitt

said on Monday, days after Trump accused Beijing of violating an

agreement to roll back tariffs and trade restrictions.

Despite the simmering uncertainties, a gauge of Nikkei

volatility eased to 24.57%, moving into the middle of

the narrow range of the past month, following a surge to as high

as 62.46% in early April, when Trump unveiled his "Liberation

Day" reciprocal tariffs.

"With Nikkei 225 VIX returning to pre-spike levels, the

market rally driven by fading uncertainty may be ending," Bank

of America Securities strategists said in a note.

"However, global earnings estimate revisions appear to be

bottoming, suggesting the market is unlikely to undergo a sharp

decline."