TOKYO, May 22 (Reuters) - Japan's Nikkei share average

fell to a two-week low on Thursday, tracking the sharp declines

on Wall Street, while a spike in U.S. Treasury yields and a

stronger yen weighed on sentiment.

By 0019 GMT, the Nikkei was down 0.8% at 37,007.79,

after dropping to 36,873.61, the lowest since May 8.

The broader Topix slipped 0.45% to 2,720.78.

Overnight, U.S. stocks closed sharply lower as Treasury

yields spiked on worries that U.S. government debt would swell

by trillions of dollars if Congress passes President Donald

Trump's proposed tax-cut bill.

Longer-dated U.S. Treasury yields rose on Wednesday after

the Treasury Department's $16 billion sale of 20-year bonds saw

soft investor demand.

The yen strengthened against the dollar overnight,

and was last up 0.2% at 143.43.

In Japan, chip-related Tokyo Electron ( TOELF ) and Advantest ( ADTTF )

fell 2.9% and 2.5%, respectively.

Uniqlo-brand owner Fast Retailing ( FRCOF ) lost 1.12%.

Railway operator Keisei Electric Railway ( KELRF ) shed 8.5%

to become the biggest percentage gainer on the Nikkei.

Bucking the trend, drug maker Daiichi Sankyo ( DSKYF ) rose

2.9% and the Topix's drug sector added 1.19% to be

the top-performing sector among the Tokyo Stock Exchange's 33

industry sub-indexes.