Japan’s Nikkei share average touched a record high earlier in the day before ending lower, as the Middle East crisis outweighed optimism over corporate earnings and technology investment, Reuters reports.

US President Donald Trump rejected Iran’s response to a proposal for peace talks, dimming hopes for an end to the conflict that has driven up global energy costs.

The benchmark Nikkei 225 Index fell 0.5 per cent to close at 62,417.88, erasing an earlier gain to 63,385.04 in the session. The broader Topix gauge, which is less exposed to geopolitical factors, climbed 0.3pc to 3,840.93.