Tokyo stocks open higher with yen stable against dollar

Tokyo stocks opened higher on Monday, extending rallies in New York with the cheaper yen also supporting the market.

The benchmark Nikkei 225 index edged up 0.23 percent, or 51.08 points, to 21,839.22 in early trade while the broader Topix was up 0.34 percent, or 5.75 points, at 1,697.29.

“After gaining in early trade, the Tokyo market today could lose a sense of direction” as positivity generated by rallies last week in New York was likely to be offset by lingering worries over US-China trade frictions, SBI Securities said in a commentary.”

The dollar was changing hands at 110.51 yen in early trade, slightly higher than 110.46 yen in New York late Friday.

In Tokyo, telecom giant SoftBank was 1.44 percent higher at 8,412 yen, Nintendo was up 2.16 percent at 35,470 and electronics parts maker Murata Manufacturing was 3.60 percent higher at 19,665 yen.

Wall Street stocks notched strong gains Friday on solid US employment data, with the Dow finishing up 0.4 percent at 24,456.48.