TOKYO, April 6 (Reuters) - Japan's Nikkei share average

climbed on Monday as investors largely shrugged off U.S.

President Donald Trump's latest threat to attack Iranian

infrastructure, and instead focused on signs the Middle East

conflict could de-escalate.

The Nikkei was up 1.10% at 53,709.58, as of 0116

GMT, while the broader Topix gained 0.53% to 3,664.43.

On Sunday, Trump warned that the U.S. could target Iran's

power plants and bridges as early as Tuesday if the strategic

Strait of Hormuz is not reopened.

Trump's repeated threats to destroy civilian infrastructure

have put global traders on edge for reciprocal attacks by Iran

on targets in the Gulf states.

However, he also suggested a diplomatic breakthrough may

imminent, saying a deal with Iran could be reached as soon as

Monday and that negotiations with Iran were already underway,

according to a Fox News report.

"Trump has become like the boy who cried wolf," said

Takamasa Ikeda, senior portfolio manager at GCI Asset

Management.

"If he were really willing to attack Iran's facilities, he

would have done it already. The market started eyeing the

withdrawal of the U.S., and the start of the post-war

negotiations between allied nations without the U.S."

The Nikkei is set to rally for a third consecutive session

on Monday, but it is too early to be optimistic about the

outlook with the yen remaining weak against the dollar, and oil

prices being under upward pressure.

In Japan, chip and artificial intelligence-related stocks

climbed, with Advantest ( ADTTF ) and SoftBank Group

rising 2.9% and 1.7%, respectively. Shares of Tokyo Electron ( TOELF )

gained 1%.

Energy sectors rose, with oil refiners and energy

explorers rising more than 1% each.

Insurer T&D Holdings fell 6.2% to become the

biggest percentage loser on the Nikkei.

Of more than 1,600 stocks trading on the Tokyo Stock

Exchange's prime market, 76% rose and 19% fell, with 3% trading

flat.