(Updates with levels, as of 0230 GMT)

By Brigid Riley

TOKYO, Aug 20 (Reuters) - Japan's Nikkei share average

tracked Wall Street higher on Tuesday, shaking off the weight of

the yen's recent gains, after an encouraging U.S. economic

outlook continued to support risk appetite globally.

The Nikkei was up 1.7% at 38,015.87 by the midday

break, recouping from previous session's losses after yen

appreciation dragged on Japanese equities.

The broader Topix was up 1% at 2,668.52.

U.S. stocks climbed on Monday, building on their largest

weekly percentage gain of the year, as equities continued to

rebound from a steep sell-off seen two weeks ago.

"The theme these days were concerns over a recession in the

United States are lessening," said Hiroshi Namioka, chief

strategist and fund manager at T&D Asset Management.

"The fact that U.S. stocks are performing solidly now is

having a relatively positive effect on Japanese shares."

Recent U.S. data revived expectations of a soft landing for

the world's largest economy, and market players now await

Federal Reserve Chair Jerome Powell's remarks on Friday at the

Jackson Hole Economic Symposium for hints on the Fed's rate

path.

Japanese technology stocks tracked their U.S. peers

higher to help lift the overall benchmark index, with big names

such as AI-focused startup investor SoftBank Group and

chip-making equipment giant Tokyo Electron ( TOELF ) trading in

green.

Gains were widespread, with 198 of the Nikkei's 225

constituents rising against 26 decliners.

A pause in the yen's climb on Tuesday reassured

investors, although analysts said the stock market remains

sensitive to moves in foreign exchange. The Japanese currency

was last hovering around 146.64 yen per dollar.

Among individual shares, Uniqlo parent firm and Nikkei

heavyweight Fast Retailing ( FRCOF ) was up 2.7% to give the

index the biggest lift.

Shares of Seven & I Holdings ( SVNDF ) slumped 8% to shed

Monday's gains made on news of a takeover proposal from Canada's

Alimentation Couche-Tard ( ANCTF ).