Japan's Nikkei ends higher despite Middle East conflict; Advantest soars

TOKYO, June 16 (Reuters) - Japan's Nikkei share average climbed more than 1% on Monday, driven by chipmaker Advantest's 9% surge following a brokerage target price upgrade, as traders shrugged off geopolitical tensions between Israel and Iran.

The Nikkei .N225 rose 1.26% to close at 38,311.33 and the broader Topix .TOPX climbed 0.75% to 2,777.13.

"Japanese shares were strong despite worries about geopolitical risks of the Middle East," said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

"That was because investors were relieved that oil prices, which affect the local economy, did not spike (today)," he said.

Global investors keenly monitored the Israel-Iran conflict for any signs of escalation into a broader regional conflict.

In Japan, shares of Advantest 6857.T jumped 9.63% after JPMorgan Securities on Friday raised its target price to 11,000 yen from 10,500 yen. The shares were the largest contributors to the Nikkei's gains.

Uniqlo-brand owner Fast Retailing 9983.T rose 1% and technology investor SoftBank Group 9984.T climbed 2.5%.

A weaker yen also supported sentiment, said Tokai Tokyo's Yasuda.

The yen weakened late last week as investors sought safe-haven assets such as the dollar - a trend that continued through Monday. The greenback was last up 0.1% at 144.235 against the Japanese yen JPY=EBS.

A weaker yen benefits exporters, as it boosts the yen value of overseas earnings when profits are repatriated to Japan.

Shares of Nippon Steel 5401.T rose 1.5% after U.S President Donald Trump approved its $14.9 billion bid for U.S. Steel X.N on Friday.

The sector for steelmakers .ISTEL.T rose 1%.

The shipping sector .ISHIP.T climbed 1% on expectations for rising freight rates amid the Middle East conflict. Shares of Kawasaki Kisen 9107.T rose 1.38%.

Of more than 1,600 stocks trading on the TSE's prime market, 69% rose, 26% declined and 3% traded flat.