TOKYO, April 24 (Reuters) - Japan's Nikkei share average

rose on Friday, and was poised for a third consecutive weekly

gain, as enthusiasm over technology sector earnings offset

uncertainty over a potential peace deal in the Middle East.

The benchmark Nikkei 225 Index rose 0.47% to

59,416.49, while the broader Topix slid 0.04% to

3,714.85.

The Nikkei briefly broke through the psychologically key

60,000 mark for the first time on Thursday, more than recouping

all its losses since the war broke out in Iran almost two months

ago and spread around the region.

Lebanon and Israel extended their ceasefire for three weeks

after a high-level meeting at the White House, U.S. President

Donald Trump said on Thursday. Trump also said the U.S. would

not use a nuclear weapon against Iran, following the extension

of a ceasefire with Tehran earlier in the week.

Overnight, chipmaker Intel ( INTC ) forecast second-quarter

revenue that beat Wall Street expectations as demand surges for

the company's server processors used for artificial intelligence

in data centres. Ibiden ( IBIDF ), a Japanese supplier to Intel ( INTC ),

soared 12.7% in Tokyo, leading gains on the Nikkei.

"Today's Japanese stock market is being driven upward by a

sense of relief regarding the situation in the Middle East,

along with continued expectations of earnings growth from the

expanding AI sector," said Wataru Akiyama, an equities

strategist at Nomura Securities.

There were 103 advancers on the Nikkei index against 121

decliners. After Ibiden ( IBIDF ), the steepest gainers were tech sector

suppliers NEC, gaining 6.8%, and Ajinomoto ( AJINF ),

which jumped 5.7%.

Canon was among the steepest decliners on the

Nikkei, losing 6.6%. After the bell on Thursday, the company

announced a downward revision to its earnings forecast.

(Reporting by Rocky Swift in Tokyo; Editing by Subhranshu Sahu)