REFILE-Japan's Nikkei eases in choppy trade as Middle East tensions weigh

By Satoshi Sugiyama

TOKYO, April 7 (Reuters) - Japan's Nikkei share average eased in choppy trade on Tuesday, as investors watched for signs of progress toward a ceasefire in the U.S.-Israeli war with Iran, even as U.S. President Donald Trump ramped up threats to strike Iranian infrastructure.

The Nikkei .N225 swayed between gains and losses, last down 0.4% to 53,202.56, after rising as much as 0.9% earlier in the session. The broader Topix .TOPX slid 0.1% to 3,642.53 after climbing as much as 1.1%.

Iran has rejected Washington's proposal for an immediate ceasefire, instead calling for a permanent end to the war, according to the Islamic Republic News Agency (IRNA).

The rejection followed increasingly bellicose ultimatums from Trump, who vowed to rain "hell" on Iran if a deal is not reached by Tuesday midnight to reopen the crucial Strait of Hormuz to oil tanker traffic.

"President Trump appears to be increasingly speaking in a reactive or ad hoc manner, and his messaging has become less consistent. As a result, markets no longer seem to be parsing every remark with the same degree of sensitivity they once did," said Hitoshi Asaoka, chief strategist at Asset Management One.

"While he continues to reference specific timelines or deadlines, investors appear to be placing less credibility on those dates than they did previously."

There were 113 advancers on the Nikkei index and 109 decliners.

Among individual stocks, truckmaker Archion 543A.T lost 7.3% to be the biggest laggard on the Nikkei index, followed by Disco 6146.T, a precision cutting tools supplier for semiconductors, which declined 5.8%.

Meanwhile, software testing company SHIFT 3697.T was the best percentage gainer with a 4.1% rise. TOTO 5332.T, a bathroom fixtures and sanitary ware manufacturer, added 3%.