(Recasts first paragraph, adds comments, updates with closing

prices)

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

reversed early declines to end higher on Tuesday, as a weaker

yen and falling yields on super long-dated bonds lifted

sentiment.

The Nikkei rose 0.51% to close at 37,724.11, after

falling as much as 0.3% earlier in the session.

The broader Topix rose 0.64% to 2,769.49.

Yields on Japanese government bonds (JGBs) fell sharply,

extending declines, after Reuters reported that Japan would

consider trimming the issuance of super-long bonds in the wake

of recent sharp rises in yields for the notes.

"The market's attention is more on JGB yields now, rather

than stocks, and the decline in yields on super-long bonds

supports sentiment for equity investors," said Shuutarou Yasuda,

a market analyst at Tokai Tokyo Intelligence Laboratory.

The yields on super-long bonds surged to record levels

last week, after a weak auction of the 20-year bonds and on

concerns about political jockeying over a government stimulus

program.

The yen also weakened against the dollar - which

typically tends to boost shares of local firms, as it increases

the value of overseas profits in yen terms when firms repatriate

them to Japan.

Technology investor SoftBank Group rose 2.23%,

becoming the biggest boost for the Nikkei.

Shares of staffing agency Recruit Holdings ( RCRRF ) rose

1.88%, while game-maker Sony ( SONY ) also advanced 1.84%.

Chip-making equipment maker Tokyo Electron ( TOELF ) fell

0.69% to drag the Nikkei the most.

Drugstore operator Tsuruha Holdings ( TSUSF ) trimmed its

early losses to rise 0.53% after shareholders approved its

merger with Welcia Holdings ( WLCGF ), despite opposition from

U.K.-based fund Orbis Investment.

On the Tokyo Stock Exchange's prime market, 68% of the over

1,600 listed stocks advanced, 26% declined, and 4% remained

unchanged.