Tokyo stocks open higher on new stimulus hopes

TOKYO: Tokyo stocks opened higher Tuesday, with investors cheered by the prospect of possible new economic stimulus under a future Japanese prime minister after the incumbent said he won't seek re-election.

The benchmark Nikkei 225 index was up 0.62 percent, or 183.20 points, at 29,843.09 in early trade, while the broader Topix index was up 0.67 percent, or 13.64 points, at 2,054.86.

Trade is "led by purchases on continued expectations that a new government will launch economic stimulus," Mizuho Securities said in a note, after Prime Minister Yoshihide Suga said last week he will not run for his ruling party's leadership, effectively ending his tenure.

Asian markets mixed as traders weigh outlook, Tokyo breaks 30,000

"After gains in early trade, the Tokyo market may lose a sense of direction after six straight days of rallies," SBI Securities said in a note.

Profit-taking sell orders on fears of overheating prices could emerge in later trade, analysts said.

The dollar fetched 109.80 yen in early Asian trade against 109.84 yen in late London hours on Monday.

In Tokyo, some tech stocks were higher, with chip-making equipment manufacturer Tokyo Electron trading up 2.43 percent at 50,180 yen and chip-testing equipment maker Advantest up 0.77 percent at 10,480 yen.

Shares in three firms that will be added to the Nikkei from next month were all stronger.

Electronic parts maker Murata Manufacturing soared 6.17 percent to 10,365 yen, factory automation specialist Keyence was up 4.29 percent at 72,230 yen, and game giant Nintendo was up 0.89 percent at 55,630 yen.

Japan's household spending in July was up 0.7 percent year-on-year, after a 4.3 percent dip in June, according to data released by the internal affairs ministry before the opening bell.

The data did not prompt strong market reaction.