TOKYO, May 7 (Reuters) - Japan's Nikkei share average

shot to a record high on Thursday as financial markets reopened

after holidays, catching up with optimism over strong technology

earnings and signs of a potential peace deal in the Middle East.

The benchmark Nikkei 225 Index rose 3.38% to an

all-time high of 61,523.36 in early trading. The broader Topix

climbed 2.02% to 3,803.95.

Japan's markets are also responding to a stronger yen since

the last trading day on Friday, following bouts of suspected

intervention by Tokyo to bolster the currency.

Wall Street indexes hit record highs overnight as positive

results from Advanced Micro Devices ( AMD ) propelled euphoria

over the red-hot artificial intelligence sector. Iran said it is

reviewing a U.S. proposal to end the more than two-month war,

while President Donald Trump said the U.S. has had very good

talks with Tehran.