Japan's Nikkei tracks Wall Street rally amid softer yen
Updates with levels, as of 0230 GMT
By Brigid Riley
TOKYO, Aug 20 (Reuters) -Japan's Nikkei share average tracked Wall Street higher on Tuesday, shaking off the weight of the yen's recent gains, after an encouraging U.S. economic outlook continued to support risk appetite globally.
The Nikkei .N225 was up 1.7% at 38,015.87 by the midday break, recouping from previous session's losses after yen appreciation dragged on Japanese equities.
The broader Topix .TOPX was up 1% at 2,668.52.
U.S. stocks climbed on Monday, building on their largest weekly percentage gain of the year, as equities continued to rebound from a steep sell-off seen two weeks ago.
"The theme these days were concerns over a recession in the United States are lessening," said Hiroshi Namioka, chief strategist and fund manager at T&D Asset Management.
"The fact that U.S. stocks are performing solidly now is having a relatively positive effect on Japanese shares."
Recent U.S. data revived expectations of a soft landing for the world's largest economy, and market players now await Federal Reserve Chair Jerome Powell's remarks on Friday at the Jackson Hole Economic Symposium for hints on the Fed's rate path.
Japanese technology stocks tracked their U.S. peers higher to help lift the overall benchmark index, with big names such as AI-focused startup investor SoftBank Group 9984.T and chip-making equipment giant Tokyo Electron 8035.T trading in green.
Gains were widespread, with 198 of the Nikkei's 225 constituents rising against 26 decliners.
A pause in the yen's climb on Tuesday reassured investors, although analysts said the stock market remains sensitive to moves in foreign exchange. The Japanese currency was last hovering around 146.64 yen JPY= per dollar. FRX/
Among individual shares, Uniqlo parent firm and Nikkei heavyweight Fast Retailing 9983.T was up 2.7% to give the index the biggest lift.
Shares of Seven & I Holdings 3382.T slumped 8% to shed Monday's gains madeon news of a takeover proposal from Canada's Alimentation Couche-Tard ATD.TO.
Reporting by Brigid Riley; Editing by Jacqueline Wong and Sherry Jacob-Phillips
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