Tokyo's Nikkei index opens slightly higher

TOKYO: Tokyo's key Nikkei 225 index opened slightly higher on Wednesday after Wall Street shares enjoyed a second straight day of gains, as worries over US rate policy eased.

The benchmark Nikkei 225 index was up 0.08 percent or 22.48 points at 28,906.61 in early trade, while the broader Topix index was down 0.13 percent or 2.62 points at 1,956.91.

Wednesday's gains came after US Federal Reserve Chair Jay Powell stressed at a congressional hearing that most factors pushing prices higher are "areas that are directly affected by the reopening" of the economy after its pandemic-enforced shutdown.

"There's no reason why it should leave a mark on inflation, say, a year or so ahead, because we should be through it, then," Powell said.

On Wall Street, the Nasdaq powered to a fresh record after a strong bounceback from last week's rout.

Japanese shares "are seen led by purchases as investors took heart from Fed chair Powell's careful position on a rate hike he showed in testimony" on Tuesday, Mizuho Securities said in a note.

"However, profit-taking could emerge" in later trade, it added.

The dollar fetched 110.73 yen in early Asian trade, against 110.68 yen in New York late Tuesday.

In Tokyo, Nissan was down 1.33 percent at 535.5 yen after a report said it will adjust July production because of a chip shortage, while its bigger rival Toyota was off 1.14 percent at 9,846 yen.

Uniqlo casual wear operator and market heavyweight Fast Retailing was up 1.97 percent at 82,950 yen, but many high-tech shares were lower, with Sony trading down 1.84 percent at 10,670 yen.

Shares of Chinese restaurant chain Totenko rallied 6.41 percent at 1,245 yen after Ueno Zoo near one of its outlets announced a giant panda had delivered twins.

And French restaurant chain Seiyoken, also a celebrated establishment in Ueno, was trading up 4.43 percent at 919 yen in early trade.