Automakers lead Tokyo stocks higher by break

Tokyo stocks advanced on Wednesday morning, picking up a strong lead from Wall Street and European markets, with automakers including Toyota and Honda leading the market higher.

Investors are now awaiting a speech by US central bank boss Janet Yellen at the Jackson Hole symposium of global central bankers Friday, hoping she will shine some more light on the direction of US monetary policy.

The dollar also rose to 100.38 yen from 100.23 yen Tuesday in New York. A weaker yen is a plus for Japan's exporters as it lifts their overseas profitability.

"The environment is fairly calm. I expect Japanese shares to do relatively well," Chihiro Ohta, a senior strategist with SMBC Nikko Securities, told Bloomberg news.

"That said, we're all about waiting for Jackson Hole now."

At the lunch break, the benchmark Nikkei 225 index was up 0.50 percent, or 83.02 points, at 16,580.38, rebounding from the previous day's drop.

The broader Topix index of all first-section shares advanced 0.60 percent, or 7.80 points, to 1,305.36.

Traders appeared unfazed by a North Korean missile launch in the early hours of Wednesday.

Japanese Prime Minister Shinzo Abe said Wednesday's missile breached his country's Air Defense Identification Zone (ADIZ) and condemned what he called an "unforgivable, reckless act" and a grave threat to Japan's security.

Toyota surged 1.85 percent to sit at 6,108 yen by the break, while Nissan tacked on 2.31 percent to 968.4 yen.

Honda climbed 1.43 percent to 3,110 yen and Mazda was up 1.92 percent at 1,533.5 yen.

Energy-linked shares also gained, with explorer Inpex rising 0.37 percent to 889.9 yen and refiner JX Holdings edging up 0.10 percent to 383.8 yen.

Among the losers, Uniqlo operator Fast Retailing, a market heavyweight, dropped 1.72 percent to end the morning session at 35,950 yen.

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