Japanese stocks were higher in early trade as expectations for the Fed’s rate increases recede.

The Nikkei 225 rose 0.5%, led by tech and financial stocks. Exporters also gained as investors grew more confident that aggressive monetary tightening from the U.S. Federal Reserve may be delayed.

Among the top performers, SoftBank Group shares advanced following a rally in its tech-related holdings. Financial stocks including Mitsubishi UFJ Financial Group and Mizuho Financial Group also posted strong gains.

Market participants are closely watching upcoming economic data and corporate earnings for further direction. The yen traded slightly higher against the dollar, underpinning exporter sentiment.

Investors remain cautious but optimistic as global growth concerns ease and domestic demand shows signs of recovery.