TOKYO, Aug 9 (Reuters) - Japan's Nikkei share average

rebounded in early trade on Friday, as a surprise drop in U.S.

unemployment claims assuaged recession fears, while a softer yen

also provided some respite.

The latest unemployment data suggested that fears the U.S.

economy could be heading for a hard landing may have been

overblown and the gradual softening in the labour market remains

intact.

The Nikkei was up 1.7% at 35,412.07, as of 0029

GMT, while the broader Topix gained 1.4%.

The rebound came in shortly after an overnight jump in U.S.

stocks, with the Nasdaq and S&P 500 each ending more than 2%

higher on Thursday.

"The prospect of better-than-feared U.S. growth and a weaker

yen constrain the fundamental and technical risks that inspired

the extreme volatility experienced at the start of the week,"

Kyle Rodda, senior financial market analyst at Capital.com,

wrote in a note.

The yen was trading at 147.275 yen against the

dollar.

Trade has been choppy in recent days following a massive

double-digit swings that rocked Japan's stock markets earlier

this week.

U.S. recession worries and the unwinding of investments

funded by a soft yen fuelled global market stress.

A hawkish shift by the Bank of Japan last week raised an

alarm over how fast the central bank would tighten monetary

policy, prompting its deputy governor to do some damage control

on Wednesday.