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TOKYO: Japan’s Nikkei share average ended higher on Thursday, tracking a strong finish on Wall Street overnight, although it pared gains as investors took profits ahead of the September US inflation data.

The Nikkei closed up 0.26% at 39,380.89, after climbing as much as 0.86% earlier in the session.

The broader Topix closed up 0.2% at 2,712.67.

Wall Street stocks advanced on Wednesday with the S&P 500 and the Dow scoring record closing highs after the release of the Federal Reserve’s meeting minutes and ahead of September inflation data and the earnings season.

The environment for the Nikkei was good, with the Dow and the S&P closing at a record high and the semiconductor index rising, said Takehiko Masuzawa, trading head of Phillip Securities Japan. “But the gains narrowed because investors sold stocks to book profits.” The market stayed away from active trade ahead of the US Consumer Price Index report due later in the day, which investors will use to gauge the Federal Reserve’s rate-cut path.

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