Tokyo stocks open higher on cheaper yen

Tokyo - Tokyo stocks opened higher on Wednesday helped by a cheaper yen against the dollar, extending Wall Street rallies on the US Federal Reserve chief's strong economic outlook.

The benchmark Nikkei 225 index rose 0.95%, or 214.84 points, to 22 912.20 in early trade, while the broader Topix index was up 0.89%, or 15.59 points, at 1 760.64.

The dollar changed hands at ¥112.99 in early Asian trade after briefly rising above ¥113, up from ¥112.84 in New York and ¥112.40 on Tuesday.

"Japanese shares are testing the upper limit with a tailwind from a cheaper yen following Fed chairman (Jerome) Powell's congressional testimony," Yoshihiro Ito, chief strategist at Okasan Online Securities, said in a commentary.

• READ: Tokyo stocks higher after Wall Street gains

Upbeat about the US economy, Powell began two days of congressional testimony on Tuesday by indicating the central bank would continue to raise rates gradually.

The comments sent the dollar up against its major peers and saw global stocks rally.

In Tokyo, exporters were higher with Toyota rising 1.55% to ¥7 489, Honda advancing 0.96% to ¥3 355 and Panasonic up 1.10% at ¥1 459 yen.

On Wall Street, the Dow closed up 0.2% at 25 119.89.