Tokyo stocks open higher on US rallies

TOKYO: Tokyo stocks opened higher on Wednesday, tracking gains on Wall Street on optimism over more US fiscal stimulus and receding unease over last week's buying frenzy.

The benchmark Nikkei 225 index was up 0.37 percent, or 106.24 points, at 28,468.41 in early trade, while the broader Topix index advanced 0.64 percent, or 11.73 points, to 1,858.75.

"Japanese shares are seen receiving support from rallies in US stocks," Toshiyuki Kanayama, senior market analyst at Monex, said in a commentary.

A cheap yen against the dollar and a declining trend in the number of new coronavirus cases in Japan are also encouraging investors to buy shares, analysts said.

The dollar fetched 105.02 yen in early Asian trade, against 104.96 yen in New York late Tuesday.

Panasonic rallied 4.99 percent to 1,450.5 yen after it revised up full-year profit forecasts.

Sony was down 0.43 percent at 10,420 yen ahead of its earnings report due after the market close.

Auto parts maker Denso rallied 6.16 percent to 6,742 yen after the Toyota affiliate revised up its full-year profit forecasts, while Toyota was up 3.61 percent at 7,724 yen.

On Wall Street, the Dow ended up 1.6 percent at 30,687.48.