(Updates for market close)

By Brigid Riley

TOKYO, March 17 (Reuters) - Japan's Nikkei share average

surged nearly 1% on Monday, fuelled by widespread gains, as

investor sentiment was lifted by a sharp rise in U.S. stocks at

the end of last week.

The Nikkei rose 0.9% to end at 37,396.52, its

highest closing point in more than a week, while the broader

Topix finished 1.2% higher at 2,748.12.

All three major U.S. stock indexes posted solid gains on

Friday, as investors hunted for bargains at the end of a

tumultuous week, with recently battered tech-related megacaps

enjoying a strong comeback.

Wall Street's gains, along with news that the U.S. Congress

had passed a stopgap spending bill to avert a partial government

shutdown, lifted sentiment and fuelled the equity market's rise

on Monday, said Hiroshi Namioka, chief strategist at T&D Asset

Management.

"It may be fleeting, but for now the global risk-off trend

has eased up today," he said.

Gains were particularly noticeable among Japan's heavyweight

semiconductor-related stocks on Monday. Shares of Tokyo Electron ( TOELF )

were up 2.2% and Advantest ( ADTTF ) added 2.7%,

providing the biggest boost to the overall index.

Heavy machinery makers outperformed, led by a

12.2% jump in shares of defence-related Mitsubishi Heavy

Industries ( MHVYF ), as investors continued to speculate about

whether Japan may need to beef up its defence spending in the

future.

Kawasaki Heavy Industries ( KWHIF ) rose 6% and IHI Corp ( IHICF )

surged nearly 10%.

While the risk-off mood was taking a breather, investors had

their eyes on a U.S. retail sales report due later in the day

amid concerns about the economic growth outlook in the United

States.

Among other major stocks, AI-focused startup investor

SoftBank Group climbed 1.8%, game maker Sony Group ( SONY )

gained 2%, and electronic components maker TDK Corp ( TTDKF )

rose 2.8%. Uniqlo parent Fast Retailing ( FRCOF ) shed

gains to end 0.5% lower.

Of the Nikkei's 225 constituents, 187 advanced, 36 declined

while two were untraded.