Japanese equities edged up steadily, advancing from a two-week low advanced as supportive data on service sector activity supported the market mood. The Nikkei average rose 0.64 percent to 40,549.54 despite the yen holding near recent highs amid hints from the Bank of Japan that rate hikes remain on the table. The broader Topix index ended 0.70 percent higher at 2,936.54.
Japan's service sector activity rose at the fastest pace in five months in July. The S&P Global final Japan Services purchasing managers' index (PMI) climbed to 53.6 in July from 51.7 in June, marking the strongest expansion since February. A PMI reading above 50.0 indicates growth in activity, while that below the threshold points to contraction.
Further, Bank of Japan’ June meeting minutes showed that a few board members are in favor of resuming interest rate increases if trade friction de-escalates.
Japanese stocks also gained on firm overnight cues from the US equities.