Tokyo stocks opened higher on Wednesday ahead of a key US inflation report and with worries growing over rising Covid-19 cases in Japan and abroad.
The benchmark Nikkei 225 index was up 0.53 percent, or 138.69 points, at 26,475.35 in early trade, while the broader Topix index edged up 0.43 percent, or 8.09 points, to 1,891.39.
Wall Street stocks ended lower overnight as markets brace for a potentially grim US inflation report.
Analysts expect US headline consumer prices rose 1.1 percent in June, even faster than in May. However, a slower increase is expected when food and energy are excluded.
Investors fear that another report showing hot inflation will lead the Federal Reserve to double down on large interest rate hikes. The US central bank said in June it was boosting rates by three-quarters of a point — the biggest increase in nearly three decades.
“Japanese shares are rebounding after a huge dip in the previous session, but investors seem to be taking a wait-and-see attitude” ahead of the US inflation data, senior market analyst Toshiyuki Kanamaya of Monex said in a note.
The dollar fetched 136.86 yen in early Asian trade, against 136.84 in New York late Tuesday.
Among major shares in Tokyo, Nikon was up 1.08 percent at 1,402 yen after the Nikkei business daily said the company will stop making SLR cameras and focus on more profitable mirrorless models.
Its rival Canon was down 0.61 percent at 3,121 yen.
Toyota was up 1.23 percent at 2,142.5 yen, Uniqlo operator Fast Retailing was up 0.35 percent at 68,650 yen, while Sony Group was down 0.40 percent at 11,165 yen.
