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

was on track for a third consecutive day of losses on Wednesday,

as tensions in the Middle East continued to weigh on sentiment

and investors took profit before Japan's earnings season kicks

into high gear.

Although the benchmark index started the day in positive

territory, rebounding from Tuesday's eight-week low, caution

quickly took hold.

The Nikkei was down 0.2% at 38,404.45 by the midday

break. The broader Topix was down 0.6% at 2681.54.

Uncertainty on how the situation in the Middle East will

unfold has weighed on sentiment this week as geopolitical

tensions between Iran and Israel rise.

At the same time, investors may be cautious as Japan's

earning season heats up, analysts said, with key companies such

as chip-testing equipment maker Advantest ( ADTTF ) due to report

next week.

"We see some market weakness this season" as companies

publish guidance for the new fiscal year, leading to some

profit-taking ahead of earnings, said Kenji Abe, an analyst at

Daiwa Securities.

The index will likely stay pinned in the 38,000-point range

in the near term, he added.

U.S. stocks were mixed overnight as Treasury yields

continued to climb, giving the Nikkei little support.

Federal Reserve Chair Jerome Powell said on Tuesday that

monetary policy needs to be restrictive for longer, further

dashing hopes of significant interest rate cuts this year.

Losses were widespread in the morning session, with only 63

of the Nikkei's 225 constituents climbing, and many index

heavyweights dragged.

Among individual stocks, Advantest ( ADTTF ) was down 1.4%, while

telecommunications company KDDI ( KDDIF ) fell 1.1%. Sony Group

Corp ( SONY ) declined 2.3%.

Fanuc Corp ( FANUF ), which makes factory automation

machinery, fell 2%.

Meanwhile, Resonac Holdings ( SHWDF ) jumped 14.2% after the

chemical company raised its revenue forecast for 2024.

So far, the Nikkei is up 15% for the year.