TOKYO, May 31 (Reuters) - Japan's Nikkei share average

inched higher on Friday from a one-month closing low in the

prior session, as U.S. bond yields fell further after a batch of

data suggested the Federal Reserve has scope to cut interest

rates this year.

The Nikkei had risen 0.17% to 38,119.96 by the

midday break after a three-day slide. It was down 0.36% for the

week and 0.74% for the month.

The broader Topix rose 0.63% to 2,743.31. It was

almost flat for the week and the month.

"The market reacted too much in the previous session to the

jump in Treasury yields, which subsequently lifted Japanese

yields," said Kentaro Hayashi, a senior strategist at Daiwa

Securities.

U.S. Treasury yields slid overnight after data showed the

world's largest economy grew more slowly in the first quarter

than previously estimated as consumer spending was revised

lower.

Japan's 10-year bond yield inched up to 1.06%

earlier in the session, but was off from a near 13-year peak of

1.1% scaled on Thursday.

Investors are now awaiting the U.S. Personal Consumption

Expenditures (PCE) price index data, the Fed's preferred measure

of inflation, due later in the day for further indication on how

soon the central bank could cut rates this year.

Technology investor SoftBank Group ( SFTBF ) rose 1.32% to

provide the biggest boost to the Nikkei. Uniqlo-brand owner Fast

Retailing ( FRCOF ) gained 1.06%.

All but two of the Tokyo Stock Exchange's 33 industry

sub-indexes rose, with the brokerage sector rising

2.78% to become the top performer. The property sector

climbed 2.41%.

Chip-related shares weighed on the Nikkei, with Tokyo

Electron ( TOELF ) falling 3.3% to become the biggest percentage

loser on the index. Chip-testing equipment maker Advantest ( ADTTF )

slipped 0.64%.

Of the 225 Nikkei components, 177 stocks rose and 46 fell,

with two flat.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)