Tokyo stocks open higher on US rallies

TOKYO: Tokyo stocks opened higher on Monday as investors took heart from rallies on Wall Street, overcoming fears over the spread of the coronavirus Delta strain.

The benchmark Nikkei 225 index was up 1.66 percent, or 457.47 points, at 28,005.47 in early trade, while the broader Topix index gained 1.62 percent or 30.81 points to 1,935.22.

It was the first day of trade after a four-day weekend that saw the virus-postponed Tokyo Olympics finally open and the full sporting schedule get under way.

"Following four days of rallies on the US Dow, Japanese shares are seen starting with gains," Okasan Online Securities said in a note.

Tokyo stocks close down for fifth straight session

"After a round of buying in early trade however, worries over an expansion in coronavirus infections will weigh on the market, making for an unclear sense of direction," it said.

US stocks rocketed to fresh records last Friday, with the Dow finishing above 35,000 for the first time, in anticipation of more blowout earnings after last week's positive round of results.

All three major indices finished the week at records, with the Dow Jones Industrial Average surging 0.7 percent to close at 35,061.55.

The dollar fetched 110.54 yen in early Asian trade, against 110.51 yen in New York late Friday.

In Tokyo, Toyota was up 1.41 percent at 9,862 yen and Sony was up 2.20 percent at 11,145 yen.

Nippon Steel rallied 6.18 percent to 1,855.5 yen after a report the steelmaker told one of its customers they wanted to hike prices for some products and reduce supply.

Rival JFH Holdings also climbed 6.82 percent to 1,316 yen.