(Updates with closing prices)

By Satoshi Sugiyama

TOKYO, April 22 (Reuters) - Japan's Nikkei share average

rose for a third consecutive session and hit a record closing

high on Wednesday, supported by heavily weighted tech stocks,

though uncertainty over U.S.-Iran peace talks tempered

sentiment.

The Nikkei closed up 0.4% at 59,585.86 in a choppy

session after falling as much as 0.6%. The broader Topix

slipped 0.7% to 3,744.99.

Tech investment conglomerate SoftBank Group rose

8.5% and chip-testing equipment maker Advantest ( ADTTF )

advancing 2.6%. They contributed about 353 and 169 points to the

Nikkei index, respectively.

"AI and a very small number of stocks that have recently

been driving the market are the only areas in positive

territory, while declines stand out across the broader market,"

said Kazunori Tatebe, chief strategist at Daiwa Asset

Management.

On Wednesday, J.P. Morgan raised its year-end target for the

Nikkei to 70,000 from 61,000, citing a boom in AI and a weaker

yen. It also hiked its year-end target for Topix to 4,300 from

4,100.

U.S. President Donald Trump said on Tuesday he would

indefinitely extend the ceasefire with Iran, hours before it was

set to expire, to allow the two countries to continue peace

talks to end the conflict. It was not immediately clear whether

Tehran or U.S. ally Israel would agree to the extension.

There were 41 advancers on the Nikkei index against 182

decliners.

Meanwhile, Sapporo Holdings ( SOOBF ) shed 5.2% to become the

Nikkei's biggest percentage loser, after the Japanese brewer

said it would exit the craft beer business in the U.S. and sell

Stone Brewing just four years after acquiring it.

Camera and precision optics manufacturer Nikon Corp ( NINOF )

lost 4.4% while tire maker Yokohama Rubber ( YORUF ) declined

3.8%.

(Reporting by Satoshi Sugiyama; Editing by Eileen Soreng and

Varun H K)