(Updates with levels as of 0230 GMT)

By Brigid Riley

TOKYO, Aug 16 (Reuters) - Japan's Nikkei share average

climbed nearly 3% on Friday and was set for its best week in

more than four years, as strong U.S. retail sales data soothed

fears of a recession in the world's largest economy and Japan's

top trading partner.

The Nikkei had risen 2.9% to 37,800.42 by the midday

break, hitting its highest since Aug. 1, while the broader Topix

was up 2.4% at 2,663.38.

For the week, the Nikkei has risen nearly 8%, on track for

its biggest weekly gain since early April 2020, buoyed by easing

concerns about the state of the U.S. economy, a pause in the

yen's rapid appreciation and a pick-up in Japan's economic

growth.

Wall Street's main indexes closed higher on Thursday after

U.S. retail sales increased 1% in July following a downwardly

revised 0.2% drop in June.

The Philadelphia SE Semiconductor index finished

nearly 5% higher, providing fresh momentum to Japan's big name

chip-related shares.

Tokyo Electron ( TOELF ) gained 3.8% and Advantest ( ADTTF )

added 5.4%.

Meanwhile, the yen weakened against the dollar overnight in

a boost to Japan's export-related shares like automaker Toyota

Motor ( TM ), which rose about 2%.

The Nikkei fell more than 12% on Aug. 5 in its biggest

single-day decline since Black Monday amid a storm of concerns,

including U.S. recession fears sparked by a weak jobs report and

a sharply stronger yen.

It has since clawed back those losses but remains well off

an all-time peak of 42,426.77 touched in mid-July.

"The market is gradually recovering from last week's shock

but I don't think we'll see it completely shaken-off until the

August nonfarm payrolls data," said Kyle Rodda, a senior

financial market analyst at Capital.com.

"That will tell us whether the sell-off was a knee-jerk

reaction or a rational response to a meaningful growth shock."

Among individual shares on Friday, Nikkei heavyweight Fast

Retailing ( FRCOF ) was up 4.9%.

Electrical component maker Fujikura ( FKURF ) rallied 9.2% to

become the biggest percentage gainer.