TOKYO, Sept 12 (Reuters) - Japanese shares rose on Monday, tracking Wall Street's solid finish last week, with heavyweights and travel-related stocks leading the charge.
By 0158 GMT, the Nikkei had advanced 1.2% to 28,544.67, while the broader Topix had risen 0.69% to 1,979.08.
U.S. stocks rallied on Friday, with the major indexes recording their first weekly gain in four weeks as investors went on a buying spree, shrugging off concerns about the economic outlook.
"Today's gain was led by easing concerns about the pace of rate hikes in the U.S. market expectations have come closer to what the Federal Reserve is looking at," said Shuji Hosoi, senior strategist at Daiwa Securities, indicating that the market sees almost 90% chance the Fed will hike interest rates by 75 basis points.
"When risk appetite is improved, Japanese stocks are favoured as they are relatively cheap compared with their overseas peers."
Heavyweights rose, with Uniqlo clothing owner Fast Retailing 2.27% and technology investor SoftBank Group jumped 2.8%. Chip making equipment maker Tokyo Electron rose 2%.
Travel and retail shares were strong after a report said Japan's government is considering scrapping its cap on the daily arrivals of overseas visitors by October.
Department store operators rose, J.Front Retailing rising 2.78% and Takashimaya gaining 2.53%.
Airlines and railways were among the top gaining sectors, rising 2.25% and 1.79%.
ANA Holdings and Japan Airlines gained 2.45% and 1.96%, respectively.
Keisei Electric Railway jumped 2.9%.
"These shares rose on the news (on scrapping the cap on the daily arrivals of overseas visitors to Japan) but whether tourists will really come to Japan will be another issue, because China's outbound tourism is not picking up." (Reporting by Junko Fujita; Editing by Rashmi Aich)
