The benchmark Nikkei 225 index rose 0.44% or 93.38 points to 21,427.25 in early trade while the broader Topix index was up 0.25% or 3.82 points at 1,559.09.

Hopes for cheaper money lifted stocks as the US Federal Reserve vowed to act to keep the American economy growing as uncertainties mount over trade and other geopolitical and economic issues.

US Federal Reserve chief Jerome Powell said trade friction and slowing growth worldwide have led many central bankers to feel the case for an interest rate cut has “strengthened” but most still want to see more data before making a move.

“A new round of Fed easing is largely contingent on the outcomes from the upcoming G20 meeting between President Trump and Xi,” National Australia Bank said in a commentary.

US President Donald Trump expects to meet his Chinese counterpart Xi Jinping at the G20 summit in Japan next week.

“For now though, the change in the Fed’s bias has encouraged the market to increase its expectations that a new round of easing is just around the corner,” it said.

Japanese stock prices will likely be solid on Thursday but a higher yen could weigh, said Okasan Online Securities chief strategist Yoshihiro Ito.

“Growing expectations for a US rate cut pushed the yen up, capping gains (in stocks),” he said in a note.

A strong yen hurts Japanese exporters as it makes their products less competitive abroad and also erodes profits when repatriated.

Some leading automakers fell, with Toyota down 0.41% at 6,744 yen and Honda down 1.52% at 2,781 yen.

The dollar stood at 107.91 yen, down from 108.08 yen in New York and the mid-108 yen range seen in Tokyo afternoon on Wednesday.

The Bank of Japan is to wrap up a two-day policy meeting later Thursday but is largely expected to stay pat.