TOKYO: Japan’s Nikkei share average erased losses to end marginally higher on Wednesday as investors bought back cheap stocks, while a key inflation report from the United States weighed on sentiment as it is likely to influence the Federal Reserve’s rate path.

The Nikkei ended 0.01% higher at 39,372.23, after falling as much as 0.65% earlier in the session.

The broader Topix rose 0.29% to 2,749.31.

“There were little market-moving cues today but investors bought back stocks when stocks fell to reasonable levels,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

“But gains were limited by caution for the outcome of the US consumer price report,” he said.

Japanese equities opened lower, tracking declines in Wall Street’s main indexes on Tuesday ahead of the November inflation data due on Wednesday - one of the last major reports ahead of the Fed’s Dec. 17-18 meeting.

Investors also awaited the Bank of Japan’s (BOJ) policy decision due on Dec. 19.

BOJ Governor Kazuo Ueda has signalled readiness to hike rates again in the near term if the bank becomes more convinced that inflation will stay around 2%, backed by solid consumption and wage growth.

Uniqlo-brand owner Fast Retailing rose 0.37% to become the biggest boost for the Nikkei.

Chip-related heavyweights fell, with Advantest and Tokyo Electron losing 0.51% and 0.49%, respectively.

Chip-making device supplier Disco fell 3.65% to become the biggest percentage loser on the Nikkei.