TOKYO, Aug 7 (Reuters) - Japanese shares swung up and

down in morning trade on Wednesday, reversing course from early

losses in a rollercoaster week of double-digit losses and gains

in the benchmark Nikkei share average.

The Nikkei was last up 2.6% at 35,583.33 as of 0149

GMT, after falling more than 2% earlier in the session.

The moves follow a 10% jump on Tuesday, its third biggest

one-day percentage gain, as the index clawed back most of its

losses from Monday's 12% plummet.

It was the market's biggest single day rout since the 1987

Black Monday crash, spurred by fears of U.S. recession risks and

the unwinding of investments funded by a cheap yen.

Comments from Federal Reserve officials this week and more

economic data have soothed some concerns of a downturn in the

United States, but market participants are keeping a vigilant

eye on developments.

"The biggest concern in the markets ahead will be whether

fears of a U.S. recession will ease," leaving them highly

sensitive to inflation and jobs data for the time being, wrote

Morgan Stanley MUFG analysts in a note to clients.

The yen reversed on Tuesday from a seven-month peak hit at

the beginning of the week, but has since strengthened from the

previous session's lows.

The broader Topix was up 3.56%.