Tokyo stocks open higher extending US rallies

TOKYO: Tokyo stocks opened higher on Monday as investors took heart from rallies on Wall Street while weighing the impact of tighter coronavirus measures on the economy.

The benchmark Nikkei 225 index was up 0.22 percent, or 64.15 points, at 29,832.21 in early trade, while the broader Topix index advanced 0.34 percent, or 6.76 points, to 1,966.23.

But the market was seen staying within the current range before the earnings season gets into full swing from next week, analysts said.

The market was also eyeing the rise of coronavirus infections in Japan, where fresh anti-virus rules came into effect in several places on Monday, as vaccines begin rolling out to the elderly.

After the strong open, the Nikkei dipped into negative territory before zigzagging around the previous session's closing price.

The market remains in a "risk-on" mood with strong US economic indicators pointing to steady recovery rather than stoking inflation fears, analysts said.

But the Japanese domestic market lacked fresh news ahead of annual earnings reports from next week, Okasan Online Securities said.

"Tokyo shares are expected to move one step forward and one step back throughout this week," Okasan said in a note.

"Major businesses will start issuing annual corporate results from next week. Before that, the market will lack new cues," it said.

"It's expected that investors will sort through individual shares for opportunities," rather than engaging in broad buying, it added.

Tokyo investors cheered Japanese golfer Hideki Matsuyama's victory at the Masters shortly before the market opened. Players rewarded his sponsors for the feat.

Toyota, whose Lexus brand endorses Matsuyama, rose 1.01 percent to 8,503 yen and Nomura Holdings rose 0.26 percent to 586.5 yen.

Sumitomo Rubber Industries, which provides the Srixon brand of golf equipment and had its logo featured on a cap worn by Matsuyama at Augusta National Golf Club, surged 1.97 percent to 1,343 yen.

Among other major shares, Sony Group fell 0.45 percent to 12,175 yen. SoftBank Group trimmed gains and was up 0.08 percent to 9,958 yen.

Uniqlo operator Fast Retailing gave up early gains and fell 0.20 percent to 87,710 yen.