TOKYO, June 5 (Reuters) - Japan's Nikkei share average

fell on Wednesday, dragged by economic-sensitive stocks after

weaker-than-expected U.S. labour market data, while the yen's

rebound hurt sentiment.

The Nikkei was down 0.8% to 38,527.6 by the midday

break. The broader Topix fell 1.16% to 2,755.24.

"Wall Street rose overnight after the labour market data

helped U.S. Treasury yields to fall," said Shoichi Arisawa,

general manager of the investment research department at

IwaiCosmo Securities.

"But the yen rose, which was negative for Japanese equities.

The positive impact of falling Japanese government bond yields

was limited in the current session."

Wall Street ended higher after data showed that U.S. job

openings fell to their lowest level in more than three years in

April, signalling an easing in labour market tightness that

supported a rate cut by the Federal Reserve this year.

U.S. Treasury yields slipped following the report. Japanese

government bond (JGB) yields tracked the declines, with the

10-year bond yield falling below 1% for the first

time since May 24.

The yen rose to a three-week peak against the dollar

overnight, as Bank of Japan officials warned they are keeping a

close eye on the currency, and a Bloomberg report said the

central bank could soon discuss reducing bond purchases.

Shipping companies lost 2.98% and energy

explorers fell 2.18%. Steel companies lost

2.17%.

The insurance sector fell 3.29%, the most among

the Tokyo Stock Exchange's 33 industry sub-indexes.

Chip-equipment maker Tokyo Electron ( TOELF ) lost 2.5% to

become the biggest drag on the Nikkei.

Toyota Motor ( TM ) lost 2.03% to become the biggest drag

on the Topix.

On the flip side, the property sector rose 1.27%

to become the top performer among the TSE's industry groups.

Of the 225 Nikkei components, 58 stocks rose and 166 fell,

with one flat.

(Reporting by Junko Fujita; Editing by Varun H K)