Japan's Nikkei falls to 2-week low, tracking Wall Street's decline

TOKYO, May 22 (Reuters) - Japan's Nikkei share average fell to a two-week low on Thursday, tracking the sharp declines on Wall Street, while a spike in U.S. Treasury yields and a stronger yen weighed on sentiment.

By 0019 GMT, the Nikkei .N225 was down 0.8% at 37,007.79, after dropping to 36,873.61, the lowest since May 8.

The broader Topix .TOPX slipped 0.45% to 2,720.78.

Overnight, U.S. stocks closed sharply lower as Treasury yields spiked on worries that U.S. government debt would swell by trillions of dollars if Congress passes President Donald Trump's proposed tax-cut bill. .N

Longer-dated U.S. Treasury yields rose on Wednesday after the Treasury Department's $16 billion sale of 20-year bonds saw soft investor demand. US/

The yen JPY=EBS strengthened against the dollar overnight, and was last up 0.2% at 143.43.

In Japan, chip-related Tokyo Electron 8035.T and Advantest 6857.T fell 2.9% and 2.5%, respectively.

Uniqlo-brand owner Fast Retailing 9983.T lost 1.12%.

Railway operator Keisei Electric Railway 9009.T shed 8.5% to become the biggest percentage gainer on the Nikkei.

Bucking the trend, drug maker Daiichi Sankyo 4568.T rose 2.9% and the Topix's drug sector .IPHAM.t added 1.19% to be the top-performing sector among the Tokyo Stock Exchange's 33 industry sub-indexes.