TOKYO: Tokyo stocks closed higher Wednesday following gains on Wall Street, as investors awaited all-important US inflation data for clues on the future of Federal Reserve rate hikes.
The benchmark Nikkei 225 index gained 1.03 percent, or 270.44 points, to end at 26,446.00, while the broader Topix index climbed 1.08 percent, or 20.37 points, to 1,901.25.
Traders were in a wait-and-see mode ahead of the release of the US consumer price data later in the day.
Global investors breathed sighs of relief after Fed chair Jerome Powell did not make major news headlines in a speech Tuesday, letting them return to buying on Wall Street.
Investors are increasingly expecting the US Fed will hike rates by 0.25 percentage points rather than 0.5 as they see cooling inflation pressure.
“Admittedly, there is still some residual uncertainty on the 25bp vs. 50bp question because the FOMC minutes were inconclusive, so Thursday’s CPI release will be an essential input into the Fed decision,” said Stephen Innes of SPI Asset Management.
Japan’s Nikkei closes at 2-week high on tech boost
The dollar stood at 132.29 yen against 132.21 yen seen Tuesday in New York.
In Tokyo trading, Sony Group jumped 3.49 percent to 11,100 yen while SoftBank Group added 0.26 percent to 5,969 yen.
Uniqlo operator Fast Retailing firmed 1.41 percent to 81,450 yen after the company said will raise the wages of thousands of its employees in Japan by up to 40 percent.
Department stores were lower after Beijing said late Tuesday it would suspend the issuing of visas for Japanese and South Korean citizens in response to measures imposed by Tokyo and Seoul on arrivals from mainland China, where Covid cases are surging.
Isetan Mitsukoshi Holdings dropped 2.97 percent to 1,335 yen while Takashimaya tumbled 2.26 percent to 1,767 yen.
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