(Updates for midday break)
By Brigid Riley
TOKYO, March 17 (Reuters) - Japan's Nikkei share average
rallied amid widespread gains on Monday as investor sentiment
got a boost from a sharp rise in U.S. stocks at the end of last
week.
The Nikkei rose 1.1% to 37,475.24 as of the midday
break, touching its highest intraday level in more than a week,
while the broader Topix was up 1.2% at 2,747.62.
Wall Street's gains, as well as news that the U.S. Congress
had passed a stopgap spending bill and averted a partial
government shutdown, were buoying sentiment and driving the
equity market's rise on Monday, said Hiroshi Namioka, chief
strategist at T&D Asset Management.
"It may be fleeting, but for now the global risk-off trend
has eased up today," he said.
All three major U.S. stock indexes posted solid gains on
Friday as investors hunted for bargains at the end of a
tumultuous week, with recently battered tech-related megacaps
enjoying a strong comeback.
Gains were particularly noticeable among Japan's
heavyweights on Monday. Tokyo Electron ( TOELF ), up 2.9%, and
Advantest ( ADTTF ), adding 2.2%, were among
semiconductor-related stocks to follow their U.S. peers higher,
giving the heftiest lift to the overall index.
Heavy machinery makers surged, led by an 11% jump
in defence-related Mitsubishi Heavy Industries ( MHVYF ) as
investors continued to speculate about whether Japan may need to
beef up its defence spending in the future.
Kawasaki Heavy Industries ( KWHIF ) rose 5.2%.
While the risk-off mood was taking a breather, investors had
their eyes on a U.S. retail sales report due later in the day
amid concerns about the economic growth outlook in the United
States.
The U.S. Federal Reserve is expected to stand pat when it
meets later this week, along with the Bank of Japan, as the
central banks size up global and domestic risks.
Among other major stocks, AI-focused startup investor
SoftBank Group and game maker Sony Group ( SONY ) were
both up a little more than 2%. Uniqlo parent Fast Retailing ( FRCOF )
edged 0.4% higher.
(Reporting by Brigid Riley; Editing by Tom Hogue and Mrigank
Dhaniwala)