Japanese shares rose on Wednesday, after falling in the previous session, as the U.S. inflation data released overnight largely met analysts expectations, with heavy technology stocks leading gains.

By GMT, the Nikkei share average had risen .% to ,., after hitting a near four-week low on Tuesday. The broader Topix had climbed .% to ,.. Shares were sold too much yesterday as investors were too cautious about the U.S. CPI data, said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.

It turned out that the core inflation figure was in line with the market expectations, so investors bought back stocks today.

Overnight, the Labor Department s CPI report showed the prices urban American consumers pay for a basket of goods posted the biggest monthly jump since September , and an annual surge of .%, the hottest year-on-year inflation number in more than four decades.

However, much of the topline CPI growth was attributable to an .% monthly surge in gasoline prices, to a record high of $. per gallon.

Uniqlo clothing shop owner Fast Retailing was the biggest boost for the Nikkei, rising .%, followed by chip-making equipment maker Tokyo Electron, which rose .%. Air-conditoining maker Daikin Industries climbed .%.

Lawson surged .% after a report said the convenience store chain was planning an initial public offering for Seijo Ishii, a chain of supermarket, by the financial year.

Shionogi tumbled .% after a report said the drug maker is considering not to recommend use of its COVID- drug for pregnant women as animal testing found fetal abnormalities.

There were advancers on the Nikkei index, against decliners. Reporting by Junko Fujita; Editing by Rashmi Aich