(Updates with closing prices)

By Junko Fujita

TOKYO, April 2 (Reuters) - Japan's Nikkei share average

fell more than 2% on Thursday, reversing earlier gains as hopes

for a quick end to the Middle East conflict faded after U.S.

President Donald Trump vowed more strikes on Iran.

The Nikkei closed 2.38% lower at 52,463.27, after

rising as much as 0.97% earlier in the session. The broader

Topix reversed early gains, ending 1.61% lower at

3,611.67.

In a televised speech, Trump said the U.S. military had

nearly accomplished its goals in Iran, but offered no clear

timeline for ending the month-long war and vowed to bomb the

country back into the "Stone Ages."

"There was nothing new in his speech. If he had declared the

immediate end of the war, the equity market could have surged,"

said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.

"Instead, investors started selling stocks to book profits

from the recent rally, as if they had expected this."

The index rallied this week on hopes for a de-escalation in

the war, after logging its worst month since the 2008 global

financial crisis in March.

The Nikkei rose to a 25-day average of around 54,258 earlier

in the session, which Shimada said was a signal that the Nikkei

had bottomed out.

Kazunori Tatebe, chief strategist at Daiwa Asset Management,

said the optimism that the war would not escalate weakened after

Trump mentioned the possibility of attacking Iran's electricity

generation and oil infrastructure.

The market seeks to know when the vital Strait of Hormuz

will reopen to push the equities higher, he said.

Chip-making equipment maker Tokyo Electron ( TOELF ) fell

3.21% to drag the Nikkei down the most. Chip-testing equipment

maker Advantest ( ADTTF ) fell 6.11%.

Uniqlo brand owner Fast Retailing ( FRCOF ) reversed early

gains to end 1.04% lower.

All but three of the Tokyo Stock Exchange's 33 industry

sub-indices fell. The shipping sector rose 1.9%.

Heavy machinery maker Mitsubishi Heavy Industries ( MHVYF )

rose 2.64%.

(Reporting by Junko Fujita; Editing by Sumana Nandy,

Harikrishnan Nair and Subhranshu Sahu)