TOKYO, May 31 (Reuters) - Japan's Nikkei share average inched higher on Friday from a one-month closing low in the prior session, as U.S. bond yields fell further after a batch of data suggested the Federal Reserve has scope to cut interest rates this year.

The Nikkei had risen 0.17% to 38,119.96 by the midday break after a three-day slide. It was down 0.36% for the week and 0.74% for the month.

The broader Topix rose 0.63% to 2,743.31. It was almost flat for the week and the month.

"The market reacted too much in the previous session to the jump in Treasury yields, which subsequently lifted Japanese yields," said Kentaro Hayashi, a senior strategist at Daiwa Securities.

U.S. Treasury yields slid overnight after data showed the world's largest economy grew more slowly in the first quarter than previously estimated as consumer spending was revised lower.

Japan's 10-year bond yield inched up to 1.06% earlier in the session, but was off from a near 13-year peak of 1.1% scaled on Thursday.

Investors are now awaiting the U.S. Personal Consumption Expenditures (PCE) price index data, the Fed's preferred measure of inflation, due later in the day for further indication on how soon the central bank could cut rates this year.

Technology investor SoftBank Group rose 1.32% to provide the biggest boost to the Nikkei. Uniqlo-brand owner Fast Retailing gained 1.06%.

All but two of the Tokyo Stock Exchange's 33 industry sub-indexes rose, with the brokerage sector rising 2.78% to become the top performer. The property sector climbed 2.41%.

Chip-related shares weighed on the Nikkei, with Tokyo Electron falling 3.3% to become the biggest percentage loser on the index. Chip-testing equipment maker Advantest slipped 0.64%.

Of the 225 Nikkei components, 177 stocks rose and 46 fell, with two flat. (Reporting by Junko Fujita; Editing by Subhranshu Sahu)