Tokyo stocks open higher after US gains

Tokyo stocks opened higher on Wednesday, propped up by gains on Wall Street as investors largely shrugged off a weak business confidence survey from Japan.

The key Nikkei 225 index rose 0.27 percent, or 60.34 points, to 22,348.48 in early trade while the broader Topix index added 0.24 percent or 3.81 points to 1,562.58.

Solid gains in US stocks on Tuesday were providing a good environment for Japanese stocks, said Okasan Online Securities.

Rodrigo Catril, a senior strategist at National Australia Bank, said "US equity investors continue to see the bright side of life."

"In recent weeks, US data releases have surprised on the upside, as economic activity comes back to life following the reopening of the economy.

"But the rise in COVID-19 infections is now triggering a reversal on the reopening strategy, so it remains to be seen if the US economy will continue to surprise over the coming month," he said.

Wall Street stocks capped a historically strong quarter on a positive note Tuesday, again ending decisively higher and shrugging off a resurgence in US coronavirus cases.

The S&P 500, the broadest of the three major indices, finished up 1.5 percent for the day and around 20 percent for the quarter, the biggest gain since 1998.

On top of the unexpected job gains in May, credited to the massive support programmes, new US data released Tuesday show consumer confidence jumped in June.

In Japan, there was a muted market reaction to a June survey that showed business confidence among major manufacturing companies had fallen to the lowest level since 2009, with investors expecting a weak reading.

The dollar inched up to 108.05 yen from 107.97 yen in New York Tuesday afternoon.

In individual stock trading, Sony climbed 0.82 percent to 7,445 yen while Honda lost 0.96 percent to 2,729 yen.

IT investor SoftBank Group rose 1.61 percent to 5,538 yen.