TOKYO, Oct 17 (Reuters) - Japanese stocks fell on Monday, tracking Wall Street's slump from the previous session as investors braced for more signals of global recession, although tourism-related shares performed well following the border re-opening last week.

Japan's Nikkei share average plunged well below the key 27,000 psychological barrier on opening and closed down 1.16% at 26,775.79. The index stabilized in the afternoon, supported by positive U.S. stock futures.

The broader Topix index fell 0.98%.

The Nikkei had its biggest percentage gain since March on Friday. "We expect the market will be softer today in reaction to that," Nomura Securities strategist Maki Sawada said in a briefing with reporters, adding that Friday's U.S. consumer sentiment data further drove share prices down.

High-growth stocks weighed down the index the most, with online medical services company M3 Inc dropping 3.9%, Fast Retailing Co Ltd falling 1.28%, and SoftBank Group Corp losing 1.79%.

Department stores were some of the best performers in the Nikkei. Shares of Isetan Mitsukoshi Holdings Ltd jumped 4.48%, Takashimaya Co Ltd rose 3.16%, and J.Front Retailing Co Ltd gained 2.14%.

"We think the expectation of a recovery in inbound demand is continuing," Nomura's Sawada said. "On the TV news this weekend you could see footage of foreigners with suitcases buying in bulk, partly due to the weak yen."

Last week, Japan had reinstated visa-free travel to dozens of countries, ending some of the world's strictest border controls to slow the spread of COVID-19. Prime Minister Fumio Kishida is counting on tourism to help invigorate the economy and reap some benefits from the yen's slide to decades-low level.

Marine transportation business Kawasaki Kisen Kaisha Ltd , which also operates a travel agency, gained the most on the Nikkei with a 6.61% climb. Shares of peer Mitsui O.S.K. Lines Ltd were up 3.76%.

Railway and airline companies also rose. Air transport , land transport and sea transport were the only three sectors to advance on the Topix index overall.

Fujifilm Holdings Corp fell 0.56% following the announcement it would stop working on Avigan as a treatment for COVID-19. Japan had ordered the company to triple its stockpile of the anti-influenza drug in the early days of the pandemic.

Of the Nikkei's 225 constituents, 37 gained, 183 fell, and five traded flat. (Reporting by Sam Byford; Editing by Sherry Jacob-Phillips)