TOKYO: Tokyo stocks opened higher Tuesday as investors sought fresh cues while keeping an eye on rising virus cases just two and a half weeks before Japan hosts the Olympics.

The Nikkei 225 index added 0.36 percent, or 101.86 points, to 28,700.05 while the broader Topix index rose 0.26 percent or 5.11 points, to 1,954.10.

"The market could easily be dominated by a wait-and-see mood with the US market on holiday and an appreciating yen weighing on the market," Okasan Online Securities said.

"Tokyo shares are likely to stay within the current range," the brokerage added.

The positive start to Tokyo trading came after European shares enjoyed broad gains overnight.

But investors may have to wait until the US market reopens later Tuesday after the Independence Day holiday to gauge the direction going forward, Okasan said.

Before making active bets, investors in Tokyo would also want to see the minutes from the Federal Open Market Committee (FOMC) meeting held in June, which will be released Wednesday, analysts said.

The market is also focused on whether the Japanese government will extend current virus restrictions for the greater Tokyo area, due to expire this weekend.

The region is seeing an upswing of new coronavirus infections, with the Tokyo Olympics set to begin on July 23.

The dollar stood at 110.87 yen, compared with 110.92 yen in London overnight.

Among major shares, Sony Group added 0.58 percent to 11,305 yen.

Uniqlo operator Fast Retailing surged 0.67 percent to 82,050 yen.

SoftBank Group added 1.50 percent to 7,502 yen. Nintendo added 0.92 percent to 65,750 yen.

Toyota gave up early gains and dipped 0.12 percent to 9,760.