Nikkei Rallies on Chip Stocks Ahead of US Inflation Data

The Nikkei share average rose on Wednesday in Tokyo, fueled by gains in chip stocks and South Korean shares. The index climbed 0.83% to close at 67,524.06, while the broader Topix ended 0.94% higher at 4,139.00.

All eyes are on the U.S. Consumer Price Index, due later in the day, for clues to the direction of Federal Reserve interest rates. Concerns about inflation appear to be capping the stock market's upside, according to Wataru Akiyama, an equities strategist at Nomura Securities.

Semiconductor-related shares, which weigh heavily on Japan's benchmark Nikkei index, turned positive after a mixed start. Memory chipmaker Kioxia gained 3.87%, while chip manufacturing equipment maker Tokyo Electron added 2.61%. Tech-heavy South Korea's index jumped 3.68%.

The U.S. and Yemen's Iran-aligned Houthis reported separate attacks on shipping on Tuesday, driving oil prices higher. Brent futures rose 0.84% to $89.66 a barrel, while U.S. West Texas Intermediate crude climbed 0.87% to $83.92.