TOKYO, Sept 16 (Reuters) - Tokyo's Nikkei average rose 0.7 percent on Wednesday, buoyed by exporters such as Sony Corp after retail sales data helped lift U.S. stocks to highs for the year.
But analysts said gains are likely to be limited as investors carefully monitor policies of Japan's incoming government.
Yukio Hatoyama will take office as prime minister and is expected to announce his cabinet line-up on Wednesday after a huge election win on Aug. 30.
The benchmark Nikkei gained 71.10 points to 10,288.72, after edging up 0.2 percent the day before. The broader Topix added 0.6 percent to 937.75. (Reporting by Aiko Hayashi)