Tokyo shares open higher


Tokyo (AFP)

Tokyo shares opened higher on Tuesday, following an upturn on Wall Street after a top Federal Reserve official argued against hiking US interest rates quickly.

Wall Street rallied after Federal Reserve governor Lael Brainard cautioned against raising rates prematurely, ahead of a Fed meeting next week to review interest rate policy.

Her remarks stood in contrast to comments Friday from a pair of Fed officials, Boston Fed president Eric Rosengren and governor Daniel Tarullo, who signalled that a rate hike could come as soon as this month.

The Tokyo Stock Exchange's benchmark Nikkei 225 index rose 0.58 percent, or 96.62 points, to 16,769.54 in the first few minutes of trading. The Topix index of all first-section issues was up 0.47 percent, or 6.22 points, at 1,329.32.

The dollar was lower after Brainard's remarks, trading at 101.59 yen in early trade in Tokyo, down from 101.85 yen in New York late Monday.

Brainard's dovish comments helped key US stock indexes all rise more than one percent, rebounding from declines of two percent on Friday.

"We have seen a slight calming of nerves," Chris Weston, chief market strategist in Melbourne at IG Ltd, said, according to Bloomberg News.

Investors are also watching a series of monthly data out of China, including industrial output, retail sales and fixed asset investment, due later Tuesday, analysts said.

"Event risk in Asia today will centre on China's August data dump -- I am not sure this data will rock sentiment too greatly, unless of course it is a disaster. However, we have seen of late that boring is good," Weston said.