Japan's Nikkei rallies on Wall Street gains, softer yen
Updates with levels as of 0600 GMT
By Brigid Riley
TOKYO, Sept 12 (Reuters) -Japan's Nikkei share average rose on Thursday after a seven-day slide, as Wall Street's overnight gains and a weaker yen buoyed investor sentiment.
The Nikkei index .N225 closed 3.4% higher at 36,833.27 in broad-based buying. Thebroader Topix .TOPX finished up 2.4% at 2,592.5.
The yen softened after hitting its highest against the dollar this year in the previous session.
"Due to the impact of the (U.S.) consumer price index report, we are seeing the yen trend weaker. This seems to be contributing to positive movements in Japanese stocks," said Hiroshi Namioka, chief strategist at T&D Asset Management.
In a boost to the dollar, Wednesday'sCPI report indicated some stickiness in inflation, crushing bets that the Federal Reserve would cut interest rates by 50 basis points next week.FRX/
Shares of exporters, which tend to benefit from a weaker domestic currency, rebounded.
Among the Tokyo Stock Exchange's 33 industry groupings, transport equipment .ITEQP.T, which includes automakers, climbed 2.4% and was among the top performers. Toyota Motor 7203.T gained 3.8%, whileKawasaki Heavy Industries 7012.T ledthe sector with a 6.3% rise.
Japan's technology shares tracked their U.S. peers higher to offer the Nikkei the largest lift.
All three major U.S. stock indexes closed higher on Wednesday, helped by gains in the technology sector. The Philadelphia SE Semiconductor Index .SOX surged, with AI chipmaker Nvidia NVDA.O adding 8%. .N
Chip-making equipment giant Tokyo Electron 8035.T jumped 4.8%, while Advantest 6857.T, which counts Nvidia among its customers, was up 9.2%.AI-focused startup investor SoftBank Group 9984.T rose about 8%.
Other major shares also rose, with Uniqloparent Fast Retailing 9983.T climbing 3.8%to give the Nikkei the biggest boost.
Shares of Seven & i Holdings 382.T rose more than 4% after Bloomberg News reported that Canada's Alimentation Couche-Tard ATD.TO was discussing how much it could raise the offer price to buy the firm.
Of the Nikkei's 225 constituents, 222 rose, while 3 fell.
Reporting by Brigid Riley; Editing by Subhranshu Sahu and Eileen Soreng
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