Japan's Nikkei falls as Middle East conflict intensifies

TOKYO, March 4 (Reuters) - Japan's Nikkei share average fell in a broad selloff on Wednesday as investors sold risk assets amid the intensifying Middle East conflict.

The Nikkei .N225 fell 2.3% to 54,963.35 as of 0032 GMT, heading for a third straight session of declines.

The broader Topix .TOPX lost 2.44% to 3,680.39.

"Under these volatile circumstances, investors want to sell down any risk assets like stocks," said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

"And they will think about what to do after things calm down," he said.

Israeli and U.S. forces pounded targets across Iran on Tuesday, prompting Iranian retaliatory strikes around the Gulf as the conflict spread to Lebanon, rattled global markets, and sent oil prices sharply higher.

Chip-related heavyweights led the Nikkei's decline, with Advantest 6857.T and Tokyo Electron 8035.T falling nearly 3% each.

All the 33 industry indexes fell, with the oil refinery index .IPETE.T falling 5.7% to become the worst performer.

Bucking the trend, Sony Group 6758.T rose 0.83% and Nintendo 7974.T was up 1.4%