Japanese equities opened higher Friday as easing US price pressures and falling crude costs strengthened bets against a September Fed rate hike.
The Nikkei 225 rose 502.6 points or 0.7% at the start of trading to 68,811.17.
US wholesale inflation slowed more than expected in July, with the PPI dropping to 4.7% annually from 5.5% in June and flat month-over-month.
Oil remained subdued with Brent declining to below $87, as traders watched for a possible Strait of Hormuz deal while fresh attacks heightened supply concerns.
No agreement has been reached yet between Iran and Oman despite earlier optimism.