Nikkei Edges Higher Amid Caution Ahead of US Inflation Data

The Japanese Nikkei index edged higher by 0.83% to close at 67,524.06, led by gains in chipmakers.

Memory maker Kioxia saw a 3.87% increase, while chip-equipment firm Tokyo Electron rose 2.61%, contributing to the broader Topix's 0.94% climb to 4,139.00.

The Nikkei's rise was cautious, however, due to concerns over inflation and its potential impact on interest rates. Nomura Securities strategist Wataru Akiyama noted that inflation worries were capping market gains.

The upcoming US Consumer Price Index (CPI) is a key driver of these concerns, as a higher-than-expected reading could lead investors to price in higher Federal Reserve interest rates and strengthen the dollar.