TOKYO: Japan's Nikkei share average advanced on Tuesday as a softer yen lifted exporter shares, while stocks with a connection to China soared on Beijing's new promises of an "appropriately loose" monetary policy next year.
The Nikkei rose 0.09 per cent to 39,197.42 by the midday break, while the broader Topix gained 0.14 per cent to 2,738.26.
Automakers were among exporter shares that climbed as the yen softened against the U.S. dollar.
The dollar was trading around 151.14 yen during the session.
Toyota Motor advanced 0.9 per cent, Suzuki Motor soared 3.5 per cent and Honda Motor added 1.8 per cent.
Fanuc and Yaskawa Electric, up 3.6 per cent and 2.6 per cent respectively, and other shares with strong ties to China rallied, after Beijing's surprise announcement on Monday that it plans to implement a looser monetary policy and more proactive fiscal policy.
Shiseido jumped 4.9 per cent to become the top percentage performer on the Nikkei.
A portion of Japan's chip-related shares tracked AI leader Nvidia NVDA.O and other U.S. technology shares lower after China's market regulator launched a probe into Nvidia over suspected violation of the country's antimonopoly law.
Chip-testing equipment maker Advantest, which counts Nvidia among its customers, traded flat after dipping in early trade.
However, the early gains on the Nikkei narrowed as investors awaited the Federal Open Market Committee (FOMC) and Bank of Japan (BOJ) meeting next week for the policy decision.
"A cut from the Federal Reserve is baked-in, but there's uncertainty about what the BOJ does. So if the latter hikes, a stronger yen will hurt Japanese stocks," said Kyle Rodda, senior financial market analyst at Capital.com.
However, somewhat more hawkish guidance from the Fed regarding next year's policy outlook could counterbalance the impact on the dollar-yen pair, Rodda added.
The U.S. inflation report and the BOJ's "tankan" survey are due this week.
Among other major stocks, chip equipment maker Tokyo Electron gained 2.2 per cent, entertainment conglomerate Sony Group added 4 per cent, while Uniqlo-owner Fast Retailing slid 1.1 per cent.