TOKYO: Tokyo's benchmark Nikkei index opened flat on Wednesday as investors digested the impact of a cheaper yen against the dollar.

The Nikkei 225 edged down 0.05 percent, or 15.79 points, to 29,286.00 in early trade, while the broader Topix index was up 0.36 percent, or 7.26 points, at 2,037.48.

"Profit-taking after recent rallies is seen weighing on the market, while the cheaper yen against the dollar has a mixed impact on Japanese companies," chief strategist Ryuta Otsuka of Toyo Securities told AFP.

Tokyo stocks open lower after mixed US close

"A cheaper yen is a tailwind for automakers and other exporters, but for others it causes higher costs in resources and transportation," he said.

The dollar fetched 116.15 yen in early Asian trade, against 116.12 yen in New York late Tuesday.

In Tokyo, Toyota rallied 4.16 percent to 2,327.5 yen after latest figures showed the Japanese auto giant led US automobile sales in 2021, overtaking General Motors for the first time.

Its smaller rival Honda was up 2.37 percent at 3,408 yen and Nissan rose 3.73 percent to 612.1yen.

Some other exporters were also higher, with Nippon Steel trading up 2.49 percent at 1,956.5 yen, Sony Group gaining 1.44 percent to 15,185 yen, and Hitachi rising 3.21 percent to 6,689 yen.

Uniqlo casual wear operator Fast Retailing was off 0.23 percent at 64,690 yen and beer brewer Asahi Group Holdings was down 1.58 percent at 4,543 yen.