TOKYO, June 8 (Reuters) - Japan's Nikkei share average sank

by the most in three months while the yen traded above 160 per

dollar on Monday on renewed concerns about technology valuations

and a flare-up in Middle East hostilities.

The benchmark Nikkei 225 Index dropped 4.6% to

63,747.83 and was poised for its biggest one-day slide since

March 9. The broader Topix slid 3.08% to 3,827.63.

Tech stocks in the U.S. cratered on Friday after a hot May

jobs report fuelled fears of a hawkish policy pivot from the

Federal Reserve. The Philadelphia SE Semiconductor Index

posted its largest one-day plunge since March 2020.

Oil prices jumped on Monday after an Israeli attack on

Beirut over the weekend prompted Iran to direct a salvo of

missiles at Israeli targets. U.S. President Donald Trump said on

Sunday that new strikes by Israel and Iran would not affect his

administration's peace talks with Tehran.

"In addition to the decline in technology-related stocks,

geopolitical risks also seem to be weighing on the market," said

Maki Sawada, an equities strategist at Nomura Securities, adding

that the yen remains at the 160 per-dollar level where currency

intervention is a concern.

The yen weakened to levels not seen since Tokyo intervened

in markets more than a month ago, while government bonds fell as

a jump in energy costs fanned inflation concerns.

Data on Monday showed that Japan's economy lost momentum in

the January-March quarter, as the Middle East conflict added to

headwinds.

AI and tech-related shares led declines on the Nikkei gauge.

The largest losers were Sumco ( SUMCF ), down 13%, followed by

Renesas , down 12.1%, and Kioxia ( KXHCF ), which

lost 11.4%.

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