Japan's Nikkei reverses gains as Trump fails to provide clear sign for war's end

By Junko Fujita

TOKYO, April 2 (Reuters) - Japan's Nikkei share average fell on Thursday, reversing earlier gains, after U.S. President Donald Trump did not provide a clear sign for the end of the Middle East war against Iran.

The Nikkei .N225 was down 1.6% at 52,867 as of 0216 GMT, after rising as much as 0.97% earlier in the session.

The broader Topix .TOPX also erased gains, falling 0.98% to 3,635.18.

Trump, in a televised speech, said the U.S. military had nearly completed the goals it had set out to accomplish in its war with Iran and that the conflict would end soon.

"There was nothing new in his speech. If he had declared the immediate end of the war, the equity market could have surged," said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.

"Instead, investors started selling stocks to book profits from the recent rally, as if they had expected this."

The index rallied this week on hopes for a de-escalation in the war, after logging its worst month since the 2008 global financial crisis in March.

The index rose to a 25-day average of around 54,258 earlier in the session, which Shimada said was a signal that the Nikkei had bottomed out.

Chip-making equipment maker Tokyo Electron 8035.T fell 2.6% to drag the Nikkei down the most. Chip-testing equipment maker Advantest 6857.T fell 5.7%.

Uniqlo-brand owner Fast Retailing 9983.T reversed early gains to fall 0.58%.

Heavy machinery maker Mitsubishi Heavy Industries 7011.T rose 2.6%.