Japanese equities remained largely flat in Thursday's opening session as a surge in U.S. technology shares propelled Wall Street to record highs.
The Nikkei 225 edged marginally lower to start the day at 63,263.46.
The upward momentum in U.S. equities helped mask persistent inflation anxieties that have led many investors to bet on U.S. Federal Reserve interest rate hikes in the coming year.
While markets are caught in between strong earnings and rising price pressures, geopolitical focus turns to Beijing ahead of a crucial President Donald Trump and President Xi Jinping summit.
Meanwhile, Kevin Warsh's narrow Senate confirmation as Fed Chair raises questions over the central bank's political independence.