TOKYO, June 17 (Reuters) - Japan's Nikkei share average rose

on Wednesday as investors weighed prospects for an end to the

Middle East conflict and awaited the U.S. Federal Reserve's

policy decision.

The Nikkei recouped early losses to climb 0.6% to

69,823.80, while the broader Topix rose 0.8%

to 4,024.25.

"With tonight's Fed meeting approaching, it seems investors

are adopting a somewhat more wait-and-see stance," said Wataru

Akiyama, an equities strategist at Nomura Securities. "However,

the fact that crude oil prices have fallen as the situation in

the Middle East has stabilised, this serves as a positive factor

for share prices."

Details of a U.S.-Iran interim deal to end the Middle East

conflict are emerging, with U.S. President Donald Trump saying

it would rule out a nuclear weapon for Tehran and a U.S.

official saying it would allow Iran to sell oil once signed.

Oil prices slid about 5% in the previous session to

three-month lows, before recovering some ground on Wednesday.

Market breadth remained strong, with 155 stocks advancing

against 68 decliners in the Nikkei.

AI-related shares that have underpinned the Nikkei's gains

performed strongly overall, with chip inspection equipment maker

Lasertec ( LSRCF ) jumping 13.7% and electronic components maker

Murata Manufacturing ( MRAAF ) rising 4.6%.

The biggest percentage losers were tech investor SoftBank

Group Corp, down 3%, followed by shipping firm Nippon

Yusen, which fell 2.5%.

The Nikkei briefly crossed the 70,000 mark for the first

time on Tuesday after the Bank of Japan raised interest rates to

1.00%, as widely expected.

Investors will closely watch new Fed Chairman Kevin Warsh's

comments on inflation, unemployment and the economic outlook at

his first post-Federal Open Market Committee press conference

later in the day. The Fed is widely expected to keep interest

rates steady.

A raft of economic indicators released earlier in the day

were solid. Japan's exports rose in May for a ninth consecutive

month while core machinery orders for April jumped 8.7%

month-on-month, well above economists' median prediction of

0.9%.