Tokyo stocks open higher on hopes for corporate results

Tokyo stocks opened higher Tuesday, tracking gains on Wall Street with investors beginning to price in bullish expectations for sound corporate results as earnings season gets underway.

The Nikkei 225 index, which has risen for the past 10 consecutive sessions, edged up 0.49 percent, or 104.60 points, to 21,360.16 in early trade.

The broader Topix index was also higher by 0.45 percent or 7.75 points, at 1,726.93.

The earnings season starting next week "is expected to see brisk results and that is supporting share prices," said Nobuyuki Kawamata, chief analyst at Tokai Tokyo Research Institute.

"Rallies in US shares are providing a tailwind for Japanese shares," he added.

Wall Street stocks jumped to fresh records Monday, boosted by bank shares that gained on expectations the Federal Reserve will again increase interest rates this year.

All three major indices ended at records, with the Dow Jones Industrial Average rising 0.4 percent to 22,956.96.

The dollar was trading in a narrow range, at 112.18 yen in early Asian trade, against 112.21 yen in New York.

Turning to individual shares, Kobe Steel was up 4.71 percent at 866 yen, rebounding for a second day after the stock lost a total of 40 percent of its value since the start of last week owing to a fake data scandal.

Meanwhile, Kansai Electric was up 0.12 percent at 1,578.5 yen after a report that it will decommission two of its old nuclear reactors.

Japanese banks followed their American counterparts higher, with Mitsubishi UFJ up 1.26 percent at 741.9 yen, and rival Sumitomo Mitsui Financial higher by 0.61 percent at 4,424 yen.

Mitsubishi Chemical was up 0.79 percent at 1,139 yen on expectations for its second-quarter results due early next month.