* Euro zone concerns still lurking * China PMI fails to impress * Sharp sheds heavily, forecasts 30 billion yen loss By Sophie Knight TOKYO, May 1 (Reuters) - Japan's Nikkei share average fell 0.9 percent on Tuesday morning as the yen hovered near two-month highs against the dollar, weighing on exporters, and euro zone uncertainty heightened investor caution. The Nikkei dipped to 9,435.73 and the broader Topix fell 0.8 percent to 797.66, p ropelled downwards by a rallying yen on the back of poor economic data from the U.S. and lower-than-expected industrial growth in China. "Although the U.S. macro data looks bad, earnings for individual stocks has been surprisingly good this year, so I don't think a strengthening yen is going to be a long-term trend," said Tetsuro Ii, the president of Commons Asset Management. China reported its official purchasing managers' index (PMI) hit a year high of 53.3 in April, signalling the economy has found a footing, but the data undershot market expectations of 53.6. Exporters were under pressure from the rallying yen, with Honda Motor Co's dip of 1.6 percent weighing on the market as it was the most heavily traded stock by turnover.