TOKYO: Tokyo stocks opened higher on Wednesday, shrugging off falls on Wall Street, with investors watching for key US data due this week.

The benchmark Nikkei 225 index was up 0.18 percent, or 49.61 points, at 27,329.41 in early trade, while the broader Topix index was up 0.32 percent, or 6.19 points, at 1,918.86.

Wall Street stocks retreated in the first session in a holiday-shortened week, as worries about inflation, Federal Reserve interest rate hikes and weakening consumer confidence blocked the market from extending last week’s rally.

However, Chinese shares’ recovery “is supporting investor sentiment” in Tokyo, Okasan Online Securities said in a note, adding that traders may “take a wait-and-see attitude” ahead of a series of US data due this week.

The dollar fetched 128.80 yen in early Asian trade, against 128.72 yen in New York late Tuesday.

Tokyo’s Nikkei index closes lower

In Tokyo, Toyota was up 2.14 percent at 2,168 yen and Sony Group was 0.87 percent higher at 12,220 yen, while Panasonic was off 0.76 percent at 1,175 yen and Uniqlo operator Fast Retailing was down 0.82 percent at 61,440 yen.

ANA Holdings was up 1.00 percent at 2,567.5 yen and its rival Japan Airlines climbed 1.28 percent to 2,376 yen after the Japanese government doubled the cap on the number of people allowed to enter the country to 20,000 from Wednesday, as part of its gradual easing of Covid-19 border controls.