Tokyo stocks open higher after Wall Street gains

Tokyo - Tokyo stocks opened higher on Tuesday, buoyed by gains on Wall Street and the yen's downtrend.

The benchmark Nikkei 225 index rose 0.39%, 85.92 points, to 21 897.85 in early trade while the broader Topix index was up 0.35%, or 5.95 points, at 1 701.24.

"Buying after yesterday's drop will likely lead the Japanese stock market today after US stocks rose and as the yen stays in the second half of 110 to the dollar," said Okasan Online Securities.

But after the initial buying runs its course, "trading will lack a clear direction as investor jitters continue over US trade policy," it added in a commentary.

The dollar was trading at ¥110.96 against ¥110.86 in New York on Monday afternoon.

A lower yen often supports the Tokyo market as it inflates Japanese export profits when repatriated.

Wall Street stocks led by tech shares shook off trade war fears to finish higher on Monday as markets remained on edge in anticipation of new US tariffs on Chinese goods.

Worries over the US spat with China pushed down Tokyo's Nikkei by more than 2% on Monday.

In Tuesday trade, Toyota was up 0.59% at ¥7 110 and Honda gained 0.28% to ¥3 203.

Sony rose 0.85% to ¥5 643 but major bank Mitsubishi UFJ Financial slipped 0.28% to ¥619.8.