Tokyo's Nikkei index opens higher on firm yen

Tokyo's key Nikkei index opened modestly higher on Wednesday as a higher yen against the dollar and profit-taking offset support from rallies on Wall Street.

The benchmark Nikkei 225 index was up 0.26 percent or 59.21 points at 22,608.26 in early trade, while the broader Topix index edged down 0.09 percent or 1.36 points to 1,585.78.

"A higher yen against the dollar is weighing on the market, prompting investors to lock in profits," said Okasan Online Securities.

But the Tokyo market is also being supported by "a record Nasdaq close, which would support Japanese high-tech shares", the analysts added.

The dollar fetched 106.44 yen in early Asian trade, against 106.53 yen in New York on Tuesday.

On Wall Street, the tech-rich Nasdaq finished up 0.7 percent -- its second straight record -- while the Dow advanced 0.5 percent to 26,156.10.

US data boosted hopes of a quick economic recovery, with investors shrugging off increased coronavirus caseloads in many American states.

In Tokyo, chip-linked shares were lower, with chip-making equipment manufacturer Tokyo Electron slipping 0.22 percent to 25,485 yen.

Other exporters were mixed, with Toyota gaining 0.61 percent to 6,938 yen while Honda slipped 1.30 percent to 2,841.5 yen and construction machine maker Komatsu traded down 0.82 percent at 2,171 yen.

SoftBank Group dropped 1.45 percent to 5,147 yen after a report said T-Mobile's shares were priced at $103 per share in a $20 billion-plus deal that will let co-owner SoftBank Group offload a stake in the wireless carrier.