(Updates prices at 0500 GMT)

By Rae Wee

SINGAPORE, April 26 (Reuters) - The yen fell amid

volatile trade on Friday after the Bank of Japan (BOJ)

maintained its accommodative monetary policy stance at the

conclusion of its two-day policy meeting, while Asian shares

rose in the broader market.

The BOJ kept interest rates around zero on Friday, as

expected, while removing a reference to the amount of government

bonds it has roughly committed to buying each month.

The central bank also issued fresh estimates projecting

inflation to stay near its 2% target in the next three years,

signalling its readiness to raise borrowing costs this year.

Still, the Japanese yen fell to the weaker side of

156 per dollar in a knee-jerk reaction to the decision, and last

stood at 156.15 per dollar.

"Currency markets were likely looking for some form of more

explicit communication on policy moves. But it appears markets

may be too hopeful," said Christopher Wong, a currency

strategist at OCBC.

Ten-year Japanese government bond futures came off

lows.

Focus now turns to BOJ Governor Kazuo Ueda's news

conference later on Friday for further details of the BOJ's

policy outlook.

Fears of an intervention from Tokyo to shore up the yen also

remained high, given the yen's decline to multi-decade lows

against a resurgent dollar.

Japanese Finance Minister Shunichi Suzuki said on Friday the

country is concerned about negative effects of the weak yen,

adding to the slew of aggressive jawboning from authorities in

recent weeks, though to little effect.

"Absence of any other measures so far just gives the

green light for dollar/yen to keep testing policymakers'

patience," OCBC's Wong said.

Riding on a weaker yen, Japan's Nikkei extended

early gains and was last 1% higher.

Elsewhere, MSCI's broadest index of Asia-Pacific shares

outside Japan rose nearly 1%. Hong Kong's Hang

Seng Index surged 2.5%, while Chinese blue chips

edged 1.3% higher.

U.S. stock futures jumped after tech giants Alphabet

and Microsoft ( MSFT ) reported quarterly results that

beat Wall Street estimates.

Nasdaq futures advanced more than 1%, while S&P 500

futures rose 0.8%.

FED OUTLOOK

Investors were also digesting the implications of Thursday's

data which showed the U.S. economy grew at its slowest pace in

nearly two years in the first quarter, though inflation

accelerated.

That reinforced expectations that the Federal Reserve would

not cut interest rates before September, while some are also

pricing in a small chance of a further rate increase.

"The U.S. Q1 GDP report delivered the worst of both worlds,

softer than expected growth and higher than expected inflation,"

said Rodrigo Catril, senior FX strategist at National Australia

Bank.

U.S. Treasury yields surged to five-month highs in the

previous session and remained elevated in Asia.

The two-year yield hovered near the 5% level,

while the benchmark 10-year yield steadied at

4.7003%.

The dollar, however, slipped on the back of the weaker U.S.

growth, and was nursing some of those losses on Friday.

Sterling dipped 0.06% to $1.2506 after touching a

two-week high on Thursday, while the euro eased 0.04%.

Focus now turns to March's core PCE price index data due

later on Friday - the Fed's preferred measure of inflation - for

further clues on the U.S. rate outlook.

"We don't think inflation will give the Fed reason to

tighten," said James Reilly, a markets economist at Capital

Economics.

"Granted, the PCE data... could present another 'bump' in

the road, extending a succession of stronger-than-expected U.S.

inflation and activity prints; but the Fed has already

acknowledged that these would come," Reilly added. "We continue

to think that the disinflationary trend will reassert itself

soon and that Fed cuts have therefore been delayed, not

cancelled."

In commodities, Brent edged 0.46% higher to $89.42 a

barrel, while U.S. crude gained 0.44% to $83.94 per

barrel.

Gold rose 0.18% to $2,336.05 an ounce.

(Editing by Gerry Doyle)