Tokyo stocks open higher extending US rallies

TOKYO: Tokyo stocks opened higher on Tuesday, tracking gains on Wall Street where tech shares rallied as long-term yields sank.

The benchmark Nikkei 225 index was up 0.49 percent or 139.06 points at 28,503.67 in early trade, while the broader Topix index edged up 0.29 percent or 5.52 points to 1,918.56.

"The US market saw buy orders of tech shares following declines in long-term yields," said Toshiyuki Kanayama, senior market analyst at Monex.

"Japanese shares are starting with gains following US rallies."

Investors remained cautious about a potential tapering of US monetary easing, and were also bargain-hunting for shares that are sensitive to economic cycles, analysts said.

The dollar fetched 108.73 yen in early Asian trade, against 108.76 yen in New York late Monday.

Wall Street stocks overnight were back in rally mode, embracing hopes for brighter days as the pandemic ebbs in the United States.

High inflation readings, chaos in the cryptocurrency markets and supply chain challenges as major economies reopen have stymied equities in recent weeks, but concerns about their effects on business took a back seat as this week's trading got under way.

In Tokyo, Sony was up 0.71 percent at 10,585 yen, Panasonic was up 2.45 percent at 1,211.5 yen, and chip-testing equipment maker Advantest was up 1.92 percent at 9,550 yen.

Uniqlo operator Fast Retailing was up 0.96 percent at 87,590 yen, and Nippon Steel was up 0.52 percent at 2,126.5 yen.

On Wall Street, the Dow ended up 0.5 percent at 34,393.98, the broad-based S&P closed up 1.0 percent and the tech-rich Nasdaq ended up 1.4 percent.