Nvidia Earnings and US Inflation Data Drive Japanese Stock Gains

Japanese stocks bounced back on Wednesday, as investors awaited key data points that could influence the Federal Reserve's next move. The benchmark Nikkei 225 rose 0.56% to 66,227.55 by midday, while the broader Topix gained 0.61% to 4,118.44.

The gains followed a positive close on Wall Street overnight, ahead of Nvidia's earnings report due after market hours. The artificial intelligence sector has been driving global equity gains, and investors are closely watching for signs of continued strength.

Ahead of the data release, SoftBank Group, a major investor in the AI sector, climbed 2.71%, supporting the Nikkei. Market breadth was positive, with 150 stocks advancing compared to 70 decliners, while five were unchanged.