Recasts, updates prices, adds analyst comment

By Satoshi Sugiyama

TOKYO, June 11 (Reuters) - Japan's Nikkei share average slipped on Thursday as investors assessed developments in the U.S.-Iran conflict, but clawed back losses after Washington confirmed that its overnight strikes on multiple targets in Iran had concluded.

The Nikkei .N225 ended morning session down 1.5% at 63,239.52, after earlier plunging nearly 3% and briefly slipping below the 63,000 level for the first time since May 22. The broader Topix .TOPX slid 1.5% to 3,788.46.

Market sentiment improved after the U.S. military's Central Command announced the completion of its strikes in Iran.

The strikes came just hours after U.S. President Donald Trump warned of further attacks if a peace agreement was not reached.

"The market opened with losses almost across the board, as selling initially gathered pace. But after the U.S. military declared early on that its attack had ended, investors took it as a signal urging Iran to move quickly toward an agreement," said Shuji Hosoi, senior strategist at Daiwa Securities.

"That fostered the view that even military action was being used as leverage in pursuit of a negotiated settlement, fuelling speculation that a deal with Iran may not be far off."

AI-related shares, which had dragged the Nikkei lower earlier in the session, also narrowed some losses. Tech investment conglomerate SoftBank Group 9984.T fell 3.9% after tumbling as much as 7.5%.

Shares of Fujikura 5803.T, which produces optical fibre used in AI data centres, lost nearly 4%, after dropping as much as 7.3% earlier in the session. Semiconductor testing equipment maker Advantest 6857.T shed 2.4%.

Market breadth remained weak, with 173 stocks falling against 52 gainers in the Nikkei.

Defying the broader downturn, printing firm TOPPAN Holdings 7911.T emerged as the top performer among the blue-chip stocks, rising 12%. It was followed by seasonings maker Ajinomoto 2802.T, up 7.6%, and camera maker Nikon 7731.T, which advanced 4%.