(Updates with stock prices)

By Junko Fujita

TOKYO, April 23 (Reuters) - Japan's Nikkei share average

reversed course on Thursday after briefly topping the 60,000

level, as investors locked in profits from an early rally driven

by technology stocks and an extended Iran-U.S. ceasefire.

The pullback came as investors reassessed lingering

geopolitical risks and weakening U.S. stock futures, despite no

fresh deterioration in the Middle East outlook.

The Nikkei fell 1.06% to 58,952.11 to end the choppy morning

session, after touching a record high of 60,013.98. The early

gains were supported by improved sentiment after U.S. President

Donald Trump extended the ceasefire with Iran.

The broader Topix fell 1.2% to 3,700.1.

Trump said the indefinite extension of the ceasefire

followed a request by Pakistani mediators. However, the U.S.

Navy's blockade of Iranian ports remained in effect, and Iran

seized two ships in the Strait of Hormuz.

"There are still uncertainties surrounding the Middle East

war. The Strait of Hormuz is not completely open and the oil

prices remain high," said Hiroyuki Ueno, chief strategist at

Sumitomo Mitsui Trust Asset Management.

"Investors have bought the shares on optimism for the war's

end until now. But for the index to rise further, they need more

positive cues that support the fundamentals that could also lift

domestic demand-related stocks."

The Nikkei has recouped all losses since the start of the

U.S.-Iran war in late February, though gains have been driven by

a narrow group of artificial intelligence-related stocks,

including SoftBank Group and Advantest .

The so-called NT ratio, the Nikkei 225 divided by the

broader Topix, hit a record high of 15.74 on Wednesday,

underscoring how the rally has outpaced the wider market.

Investors booked profits after the brief morning rally, as

they weighed declines of the S&P and Nasdaq

futures in Asia trade, said Masahiro Ichikawa, chief market

strategist at Sumitomo Mitsui DS Asset Management.　

In Japan, chip-related shares gave up early gains, with

Advantest and Tokyo Electron down 0.16% and 0.53%,

respectively.

Technology investor SoftBank Group narrowed its gains, up

3.91%.

Of the 1,600 shares on the Tokyo Stock Exchange's prime

market, 23% rose and 72% fell, and 4% traded flat.