(Updates with closing prices)

TOKYO, May 2 (Reuters) - Japan's Nikkei share average

rose on Friday on optimism around progress on tariff talks and a

weaker yen, setting the index to mark its longest rally in

nearly two years.

The Nikkei rose 1.04% to close at 36,830.69, and

posted a seventh straight session of gains, its longest winning

streak since August 2023.

For the week, the index gained 2% to post a third straight

weekly gain.

On the day, the broader Topix rose 0.31% to

2,678.78.

"It looks like the tariff negotiations between Japan and the

U.S. are progressing, which is within expectations but has

become a positive cue," said Shoichi Arisawa, general manager of

the investment research department at IwaiCosmo Securities.

"In addition, the news about the negotiations between China

and the U.S. lifted U.S. stock futures, which boosted the

Nikkei."

Japan's top economic negotiator Ryosei Akazawa held talks

with his U.S. counterpart and said he aims to hold the third

round of discussions again this month.

Separately, China's Commerce Ministry said Beijing is

"evaluating" an offer from Washington to hold talks over U.S.

President Donald Trump's crippling tariffs.

The Nikkei extended gains after the remarks from China,

tracking a rise in S&P and Nasdaq futures.

The Nikkei has fully recouped its losses since U.S.

President Donald Trump's April 2 tariff announcements, but gains

were limited on Friday ahead of Japan's four-day weekend and

U.S. nonfarm payrolls later in the day, said Arisawa.

A weaker yen also lifted appetite for Japanese stocks. The

local currency sank after the Bank of Japan lowered growth

forecasts due to U.S. tariffs and left interest rates on hold on

Thursday.

Uniqlo-brand owner Fast Retailing ( FRCOF ) rose 1.98% to

provide the biggest boost to the Nikkei.

Yamato Holdings ( YATRF ) rose 5% to become the top

percentage gainer on the Nikkei after the package delivery

services provider's strong annual operating profit outlook.