TOKYO, Aug 3 (Reuters) - Japanese shares fell on Thursday tracking overnight Wall Street declines, as a rise in yields in the United States and Japan hurt appetite for equities.

By 0143 GMT, the Nikkei index was down 1.1% at 32,339.48. The broader Topix had fallen 1.03% to 2,278.00.

"I take the declines as an adjustment to the benchmark after its sharp gains until Thursday," said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute.

"Investors were also worried about rising Japanese yields. They did not rise as much on the day when the Bank of Japan announced the policy tweak, but they do rise when yields on U.S. Treasury rise."

The Nikkei rose about 5% until Thursday from the lowest in July.

Japan's 10-year government yield hit a more-than nine-year high on Thursday, tracking U.S. 10-year Treasury yields.

Wall Street finished lower overnight, with the S&P 500 and Nasdaq Composite down for a second straight day as investors took profits on five months of gains, a day after rating agency Fitch cut the U.S. government's credit rating.

TDK tanked nearly 10% after the sensor maker cut its full-year outlook.

Yamaha Corp lost 10.59%, as the musical instruments maker lowered its annual profit forecast.

Bucking the trend, Kawasaki Kisen surged 5.2% after the shipping firm, whose shareholders include an activist investment fund, made an announcement of share buyback. (Reporting by Junko Fujita; Editing by Rashmi Aich)