TOKYO: Tokyo shares opened higher on Friday, tracking overnight gains on Wall Street with investors also cheering the dollar's rise.

The benchmark Nikkei 225 index rose 1.63 percent, or 463.94 points to 29,012.95, while the broader Topix index added 1.46 percent, or 27.81 points, to 1,938.83.

"Today's Japanese shares are seen rebounding as investors cheer gains of US shares, while the dollar/yen swings toward the upper side of the 109 level," Okasan Online Securities said in a note.

"The strength of Chinese shares is also becoming more pronounced as concerns recede over possible monetary tightening. This should also provide support for Tokyo shares," it added.

The dollar stood at 109.89 yen from 109.83 yen in New York Thursday and higher from 109.07 yen in Tokyo Thursday.

The dollar's rise usually drives up Japanese exporter shares and the overall Tokyo market.

Meanwhile, the Tokyo market has largely factored in the government's plan to extend a virus state of emergency in key regions, including Tokyo and Osaka, to June 20, Okasan added.

The market also barely reacted to the announcement that Japan's unemployment rate in April rose to 2.8 percent from 2.6 percent in the previous month.

Capital Economics said it expected Japan's employment and the labour force to return to pre-virus levels in the second half of the year as vaccines allow the economy to return to full health.

Among major shares, Toyota added 1.50 percent to 9,115 yen. Honda rose 2.51 percent to 3,431 yen.

Uniqlo-operator Fast Retailing added 1.64 percent to 89,420 yen. Sony Group rose 0.56 percent to 10,860 yen.

Leading shipping firm Nippon Yusen Kabushiki Kaisha added 1.59 percent to 4,460 yen.

Tokyo Electron, a major producer of tools to build semiconductors, added 0.45 percent to 47,330 yen.

Mitsubishi UFJ Financial Group added 1.05 percent to 625.9 yen.