TOKYO, May 2 (Reuters) - Japan's Nikkei share average

rose on Friday on optimism around progress on tariff talks and a

weaker yen, setting the index on track to post its longest rally

in nearly two years.

The Nikkei advanced 0.69% to 36,705.53 by the midday

break, and is poised to post a seventh straight session of

gains, its longest winning streak since August 2023.

For the week, the index is on course to rise 2% to post a

third straight weekly gain.

The broader Topix edged up 0.16% at 2,683.61.

"It looks like the tariff negotiations between Japan and the

U.S. are progressing, which is within expectations but has

become a positive cue," said Shoichi Arisawa, general manager of

the investment research department at IwaiCosmo Securities.

"In addition, the news about the negotiations between China

and the U.S. lifted U.S. stock futures, which boosted the

Nikkei."

Japan's top economic negotiator Ryosei Akazawa held talks

with his U.S. counterpart and said he aims to hold the third

round of discussions again this month.

Separately, China's Commerce Ministry said the U.S. has

approached China to seek talks over Trump's 145% tariffs and

Beijing's door is open for discussions.

The Nikkei extended gains after the remarks from China,

tracking a rise in S&P and Nasdaq futures.

The Nikkei has fully recouped its losses since U.S.

President Donald Trump's April 2 tariff announcements, but gains

were limited on Friday ahead of Japan's four-day weekend and

U.S. nonfarm payrolls later in the day, said Arisawa.

A weaker yen also lifted appetite for Japanese stocks. The

local currency sank after the Bank of Japan lowered growth

forecasts due to U.S. tariffs and left interest rates on hold on

Thursday.

Uniqlo-brand owner Fast Retailing ( FRCOF ) rose 1.44% to

provide the biggest boost to the Nikkei.

Yamato Holdings ( YATRF ) rose 3.69% after the package

delivery services provider's strong annual operating profit

outlook.