* Strong yen, falling Treasury yields cause profit-taking
* Bird flu reports lift some infection-control products makers
By Ayai Tomisawa
TOKYO, Nov 29 (Reuters) - Japan's Nikkei share average dropped on Tuesday morning in sympathy with Wall Street, while a stronger yen hurt sentiment and insurers took a breather from recent gains.
By midmorning, the Nikkei slipped 0.3 percent to 18,308.50.
"The weak yen trend has paused and Treasury yields are falling, so profit-taking in Japanese stocks is natural," said Nobuhiko Kuramochi, a strategist at Mizuho Securities.
Crude oil prices have been volatile, as the market reacted to developments around efforts by major producers to reach an agreement on the contentious issue of output cuts at their meeting on Wednesday.
Recent gainers such as insurers, which benefit from a high-yield yield environment, were weighed down by a pullback in U.S. Treasury yields.
Dai-ichi Life Holdings fell 1.7 percent, while MS&AD Insurance shed 0.9 percent.
The dollar stood at 111.96 yen, off its overnight low of 111.35 but well below an 8-month high of 113.90 touched on Friday.
Exporters were mixed, with Toyota Motor Corp flat, Honda Motor Co down 0.2 percent and Advantest Corp off 0.7 percent.
On the upside, Taiko Pharmaceutical, which makes infection-control products, surged 3.2 percent, after Japanese news media reported that bird flu has been detected in poultry farms in Japan for the first time in two years.
Daiwabo Holdings, which makes masks and other synthetic cotton products, jumped 5.1 percent, but grilled-chicken restaurant operator Torikizoku Co dropped 2.8 percent.
The broader Topix was flat at 1,469.15 and the JPX-Nikkei Index 400 was also flat at 13,186.43.
(Editing by Shri Navaratnam)