TOKYO, Dec 13, 2022 (BSS/AFP) - Tokyo stocks opened higher on Tuesday, extending Wall Street rallies as markets showed cautious optimism ahead of key US inflation data and a closely watched Federal Reserve meeting.

The benchmark Nikkei 225 index was up 0.83 percent, or 232.07 points, at 28,074.40 in early trade, while the broader Topix index was up 0.88 percent, or 17.29 points, at 1,974.62.

The Japanese market "is likely to be led by purchases, following gains in US shares, then a wait-and-see attitude will likely grow ahead of the announcement of the US consumer price index for November," Mizuho Securities said in a note.

The dollar fetched 137.56 yen in early Asian trade, against 137.66 yen in New York.

Overnight in New York, the Dow Jones Industrial Average jumped 1.6 percent to finish at 34,005.04, while the S&P 500 rose 1.4 percent and the tech-rich Nasdaq Composite Index rose 1.3 percent.

Observers expect US consumer price increases to slow in November, adding to signs that red-hot inflation is finally easing, while the US central bank is anticipated to announce a smaller interest rate hike after a two-day policy meeting starting Tuesday.

In Tokyo, Sony Group was up 0.87 percent at 10,970 yen, Toyota was up 0.69 percent at 1,976.5 yen, and Panasonic was up 0.57 percent at 1,229 yen.

Uniqlo operator Fast Retailing was up 0.57 percent at 84,380 yen. Construction machine maker Komatsu was up 1.38 percent at 3,150 yen.

But chip-testing equipment maker Advantest was off 0.71 percent at 9,740 yen.