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TOKYO: Japan’s Nikkei share average closed higher on Wednesday amid a weaker yen, but earnings from AI darling Nvidia later in the day kept investors cautious.

The Nikkei ended up 0.22% at 38,371.76, reversing early declines, as the yen extended its slide against the dollar over the course of the session.

That put the index close to the top of its narrow range since mid-month, which has been anchored around the psychological 38,000 mark.

The broader Topix slipped 0.08%.

Market expectations for Nvidia’s financial report are sky-high, and anything short of a stellar forecast from the chipmaker could jolt investor confidence in the AI-fuelled rally.

“The bar is extremely high, and depending on the result, stocks could swing wildly”, which kept Japanese investors largely sidelined, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.

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