TOKYO, May 27 (Reuters) - Japan's Nikkei share average

edged up on Monday, tracking Wall Street higher even as concerns

about the Bank of Japan (BOJ) tightening its monetary policy

weighed on sentiment.

After slumping at the end of the week, the benchmark index

received a boost from U.S. stocks, which rose overnight on

Friday on news of an improving consumer outlook on inflation.

Softer inflation expectations have created an upbeat risk

mood on Monday, giving support to the Nikkei, said Charu

Chanana, global market strategist and head of FX strategy at

Saxo.

"However, higher Japanese yields could constrain gains."

The Nikkei was up 0.29% at 38,758.96 by the midday

break, with trading volume thin owing to U.S. and UK public

holidays.

The broader Topix was up 0.31% at 2750.91.

With questions remaining about further policy tightening

this year, investors were cautious as BOJ Governor Kazuo Ueda

and his deputy Shinichi Uchida spoke in the Asian morning.

Japan's 10-year government bond yield rose to the

psychologically significant 1% mark last week amid hawkish

signals from the BOJ, fanning policy jitters.

While the Nikkei touched the closely watched 39,000 level

this month, it has failed to maintain the key range amid

monetary policy uncertainty both abroad and domestically, as

well as conservative revenue outlooks from Japanese companies.

The index rose to an all-time high of 41,087.75 on March 22,

but retreated the following month.

On Monday, major semiconductor-related shares largely

advanced to lift the Nikkei, tracking a strong performance by

their U.S. peers on the back of Nvidia ( NVDA ) earnings last

week.

Socionext ( SOCNF ) jumped 5.5% to become the second largest

percentage gainer, behind Kansai Electric Power ( KAEPF ), up 6%.

Advantest ( ADTTF ), which counts Nvidia ( NVDA ) among its customers,

advanced 1.7%, while AI-focused startup investor SoftBank Group ( SFTBF )

gained 1.3%.

Among other index heavyweights, Uniqlo parent firm Fast

Retailing ( FRCOF ) climbed 0.8% to give the Nikkei an additional

boost.