TOKYO, Dec 28 (Reuters) - Japanese shares jumped on Tuesday, with heavyweight technology stocks leading the charge, after strong U.S. retail sales data drove Wall Street to a strong overnight finish and eased some fears around the Omicron COVID-19 variant.

Also powering risk sentiment, data showed a surge in Japan's factory output in November as production in the auto sector benefited from a recovery in global parts supplies.

The Nikkei share average rose 1% to 28,956.90 by 0220 GMT, after advancing as much as 1.6% to surpass the 29,000 level for the first time since Dec. 16.

The broader Topix gained 0.89% to 1,995.37.

Wall Street's S&P 500 index ended at a record high in its fourth straight day of gains, as an ecommerce-powered boom in U.S. retail sales underscored economic strength and eased worries from Omicron-driven flight cancellations that hit travel stocks.

"Sentiment is strong with gains in the U.S. equities last night. The Japanese market will keep the momentum if the U.S. market remains strong," said Takatoshi Itoshima, strategist at Pictet Asset Management.

"But most participants are short-term investors, with many long-term investors away for the holiday season, such investors may sell shares to gain profits if the market keeps rising."

Technology stocks led gains, with chip-making equipment maker Tokyo Electron rising 1.77%, air-conditioner maker Daikin Industries climbing 2.21% and robot maker Fanuc gaining 1.81%.

Precision makers gained the most among the 33 industry subindexes on the bourse, with optical glass maker Hoya rising 1.36% and medical equipment and camera maker Olympus jumping 3.22%.

Kewpie advanced 2.2% after the mayonnaise maker raised its forecast for annual profit and dividend.

Casual clothing retailer Shimamura jumped 4.6% after posting a 25% jump in its nine-month net profit. (Reporting by Junko Fujita; Editing by Devika Syamnath)