Japan's key Nikkei index closed higher on Tuesday after Wall Street stocks edged up ahead of a Federal Reserve meeting.

The benchmark Nikkei 225 index climbed 0.25 percent, or 96.63 points, to 39,134.79, while the broader Topix index trimmed 0.20 percent, or 5.69 points, to 2,776.80.

The dollar fetched 157.24 yen, up from 157.04 yen in New York and levels of around 155 seen last week.

Tokyo shares "took cues from Wall Street, where investor sentiment improved following Nvidia rallies, and high-priced stocks were bought", IwaiCosmo Securities said.

But gains narrowed, with traders "inclined to size up financial events both in Japan and the United States", the brokerage added.

Investors are awaiting a key US consumer price report due on Wednesday and the Federal Reserve meeting the same day.

While the Fed is expected to hold interest rates steady, the central bank's commentary will be analysed for its implications for monetary policy later in 2024.

On Friday, the Bank of Japan's governor will speak after the conclusion of a two-day policy meeting.

Among major shares, Tokyo Electron surged 2.24 percent to 35,560 yen, and Kokusai Electric spiked 3.82 percent to 4,745 yen.

Uniqlo operator Fast Retailing gained 0.50 percent to 41,700 yen.

Toyota, meanwhile, lost 0.55 percent to 3,254 yen, and Sony dipped 0.14 percent to 13,340 yen.