(Recasts headline and paragraph 1, adds comments, updates stock

prices and bond yields)

By Junko Fujita

TOKYO, May 1 (Reuters) - Japan's Nikkei share average

edged higher on Friday, helped by gains in a small group of

technology stocks, while the yen's rally helped government bond

prices rebound.

The Nikkei closed 0.38% higher at 59,513.12. It,

however, dipped 0.3% for the week, snapping a third straight

week of gains.

The broader Topix reversed early declines to end

0.04% higher at 3,728.73 and inched up 0.3% for the week.

A stronger yen eased inflation concerns, helping the yield

on the 10-year Japanese government bond (JGB) to slip to 2.5%

from a 29-year peak of 2.535% hit in the previous session.

Bond prices move inversely to yields.

Japan intervened to prop up the yen against the U.S. dollar

on Thursday, its first official currency action in nearly two

years, sources told Reuters, sending the Asian currency higher

by as much as 3%.

Top currency diplomat Atsushi Mimura continued his warnings

on Friday that speculative moves persist in markets, a clear

signal that Tokyo stands ready to intervene to shore up the yen.

"Some market participants expect the Bank of Japan to raise

rates soon to maximise the effect of the currency intervention,"

said Miki Den, senior Japan rates strategist at SMBC Nikko

Securities.

"So the risk of the BOJ falling behind the curve retreated

and appetite for longer-dated bonds was boosted," he said.

Yields on super-long ends also fell on Friday after spiking

in the previous session, with the 20-year JGB yield

slipping 2.5 basis points to 3.37% and the

30-year bond yield down 2 bps at 3.715%.

Among individual stocks, Tokyo Electron ( TOELF ) jumped

6.89% after the chip-making equipment maker flagged a 36% gain

in net profit for the six months ending September.

SoftBank Group rose 3.93%.

Sumitomo Corp ( SSUMF ) surged 17% after announcing a higher

annual net profit and the sale of a nickel project in

Madagascar.

Mitsubishi Corp ( MSBHF ) jumped 4.59%.