Nvidia Earnings, US Inflation Data Drive Japanese Stocks Higher

Japanese stocks edged higher on Wednesday as investors awaited Nvidia's earnings report and key US inflation data that could provide fresh clues on the timing of the Federal Reserve's next interest-rate move.

The benchmark Nikkei 225 rose 0.56% to 66,227.55 by the midday break, recovering from an earlier decline. The broader Topix gained 0.61% to 4,118.44.

Wall Street's main indexes ended higher overnight ahead of Nvidia's results, due after the US market close on Wednesday. The earnings are being closely watched for signs of continued strength in the artificial intelligence sector, which has been a major driver of gains in global equities.