TOKYO, May 30 (Reuters) - Japan's Nikkei share average

fell more than 1% on Thursday, touching one-month intraday lows

after a slump on Wall Street and a spike in global yields

dampened sentiment.

The Nikkei was down 1.51% at 37,974.47 by the midday

break, after declining as much as 2.4% earlier in the session to

37,617.00, a level last touched on April 26. It was set for its

third consecutive day of declines.

The broader Topix was down 0.73% at 2721.61.

Weighing on the market was a dip in U.S. stocks overnight as

Treasury yields rose to four-week peaks and concerns continued

over the timing and scale of possible U.S. interest rate

cuts.

Meanwhile, the 10-year Japanese government bond (JGB) yield

hit its highest level since July 2011 at 1.1% in the Asian

morning as investors bet on another rate hike in Japan as soon

as July and remained wary of tapering of the central bank's bond

purchases.

While low compared with their U.S. peers, JGB yields, which

were higher than a decade peak, still had a significant impact

on market sentiment, said Hiroshi Namioka, chief strategist at

T&D Asset Management.

"It's a bit of a psychological shock for market players who

haven't seen yields rise like this until now, or rather, who

have become numb as easy monetary policy continued for such a

long time."

Technical reasons such as end-of-the-month portfolio

rebalancing also contributed to the Nikkei's steep decline, he

said.

Major technology shares, which tend to hurt under rising

yields since higher rates make borrowing more expensive, were

among some of the biggest drags on the index.

Chip-related stock Advantest ( ADTTF ) fell 5.5% to become

the worst percentage performer in the morning, while Tokyo

Electron ( TOELF ) dropped 2.2%.

AI-focused startup investor SoftBank Group ( SFTBF ) slipped

2.2%.

Among other heavyweight shares, Uniqlo parent firm Fast

Retailing ( FRCOF ) declined 2.4% to swipe about 96 index points

off the Nikkei.