Japan stocks rise as investors await Nvidia earnings, US inflation data

Japanese shares rose on Wednesday as investors awaited Nvidia's earnings and U.S. inflation data, with the Nikkei 225 rose 0.56% to 66,227.55 by midday, recovering from an earlier decline. The Topix gained 0.61% to 4,118.44, with SoftBank Group climbed 2.71% to support the Nikkei. The earnings report is closely watched for AI sector strength, with investors likely to remain cautious ahead of the U.S. PCE inflation data for signals on the Fed's next rate move. The U.S. PCE inflation data for July, the Fed's preferred inflation gauge, due later on Wednesday, with a softer-than-expected PCE reading could reduce expectations of a near-term Fed rate increase. Market breadth on the Nikkei was positive, with 150 stocks advancing compared with 70 decliners, while five stocks were unchanged. Mitsubishi Materials rose 7% to 4,118.44, with Dowa Holdings gained 4.85% and Tokyo Electric Power up 4.71%.