(Updates at 0600 GMT)

TOKYO, Sept 24 (Reuters) - Japan's Nikkei share average

rose on Tuesday to a three-week closing high as markets resumed

trade after a long holiday weekend, with Wall Street's overnight

gains and the Bank of Japan's dovish comments last week lifting

investor sentiment.

The Nikkei ended 0.57% higher at 37,940.59, its

highest close since Sept. 3. The index rose as much as 1.9% to

38,427.15 earlier in the session, crossing the 38,000 level for

the first time since Sept. 4.

Japanese markets were closed on Monday for a holiday.

U.S. stocks closed modestly higher on Monday as investors

assessed whether a trend would develop in the week following the

Federal Reserve's rate cut.

The BOJ kept interest rates steady on Friday and its

governor said the central bank could afford to spend time eyeing

the fallout from global economic uncertainties, signalling it

was in no rush to raise borrowing costs further.

"Expectations that the U.S. economy will make a soft landing

have risen after the Fed's 50 basis-point rate cut," said

Shuutarou Yasuda, a market analyst at Tokai Tokyo Research

Institute.

"And, BOJ Governor (Kazuo) Ueda sounded more dovish on

Friday than his remarks after the previous policy meeting, which

was positive for the stock market."

Ueda reiterated his stance on Tuesday that the central bank

was in no rush to raise interest rates further.

Electronic component maker TDK jumped 4.21% and was

the biggest boost for the Nikkei.

Chip-making equipment maker Tokyo Electron ( TOELF ) erased

early gains to fall 0.93%, weighing on the Nikkei the most.

The broader Topix rose 0.54% to 2,656.73, with

conglomerate Hitachi ( HTHIF ) jumping 5% to become the biggest

boost.

Shingo Ide, chief equity strategist at NLI Research

Institute, said the market rose because investors bought back

stocks to cover short positions made before the Fed's rate-cut

decision last week.