Japan's Nikkei rallies as US tariff fears ease, yen softens

TOKYO, March 25 (Reuters) - Japan's Nikkei share average rallied in early trade on Tuesday as indications that impending U.S. tariffs against trading partners may be more measured and targeted than previously feared injected fresh optimism into markets.

A softer yen going into the day also gave an additional boost to overall investor sentiment.

The Nikkei rose 1% to 38,002.70 as of 0010 GMT. The broader Topix was up 0.6% after briefly rising as high as 2,818.36, its highest since July 24.

Japanese equities took their cue from all three major U.S. stock indexes finishing sharply higher on Monday, with the S&P 500 closing at its highest in over two weeks as Wall Street took the latest comments from U.S. President Donald Trump as a sign of flexibility on the tariff blitz that has rocked markets.

The dollar last traded at 150.82 yen after the Japanese currency depreciated overnight, buoying exporter-related shares that tend to benefit from a softer yen.

Among major shares, automaker Toyota Motor ( TM ) and Uniqlo parent firm Fast Retailing ( FRCOF ) were up, along with big-name technology shares SoftBank Group, Tokyo Electron ( TOELF ), and Advantest ( ADTTF ). (Reporting by Brigid Riley; Editing by Tom Hogue)