TOKYO, Dec 14 (Reuters) - Japanese shares rose on Wednesday tracking overnight Wall Street gains, after smaller than expected U.S. inflation data boosted optimism for slower pace for the Federal Reserve's interest rate hikes.

The Nikkei gained 0.67% to 28,141.41 by the midday break, while the broader Topix rose 0.46% to 1,974.79.

U.S. stocks rose overnight after an unexpectedly small consumer price increase buoyed optimism that the Fed could soon dial back its inflation-taming interest rate hikes.

"Investors were relieved after they confirmed a slower pace of U.S. inflation," said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.

"But they are still cautions as they awaited for the outcome of the FOMC (Federal Open Market Committee) that could turn the market's course."

Technology heavyweights led the Nikkei higher, with chip making equipment maker Tokyo Electron rising 2.19%, providing the biggest boost to the index.

Wafer maker Shin-Esu Chemical gained 2.11%, while air-conditioning maker Daikin Industries rose 1.38%.

Toray Industries, a leading producer of carbon fibre materials for aircraft, jumped 7.53% as United Airlines made a big Boeing order, including 100 Dreamliners.

Toray led the textiles makers, up 3.10%, to become the top gainer among the 33 industry sub-indexes on the Tokyo Stock Exchange.

The airline sector was the biggest loser among the exchange's industry groups, down 0.77%.

There were 160 advancers on the Nikkei index, against 59 decliners. (Reporting by Junko Fujita; Editing by Rashmi Aich)