Tokyo stocks open higher extending US rallies

Tokyo stocks opened higher Tuesday as investors took heart from rallies on Wall Street on eased worries over corporate earnings.

The benchmark Nikkei 225 index was up 1.54 percent, or 413.56 points, at 27,189.35 in early trade, while the broader Topix index was up 1.29 percent, or 24.25 points, at 1,903.81.

"Japanese shares are seen starting with gains following US stocks rallies", where concerns over corporate earnings eased, senior market analyst Toshiyuki Kanayama of Monex said in a note.

Overnight, all three main indices on Wall Street rebounded, with the S&P 500 jumping 2.7 percent.

Bank of America became the latest US financial heavyweight to top estimates following the reporting of solid results by JPMorgan Chase and other banks on Friday.

Analysts have been hopeful that a successful third-quarter earnings season could reset a market that has tumbled in 2022 due to worries over inflation and Federal Reserve interest rate hikes.

Meanwhile, Britain's fourth finance minister in as many months sensationally ripped up a tax-cutting budget that had spooked markets.

"Another big UK fiscal U-turn and positive earnings from BofA (Bank of America) boosted global risk appetite," senior analyst Tapas Strickland of National Australia Bank said in a note.

The dollar fetched 148.99 yen in early Asian trade, against 149.03 yen in New York, where the yen renewed its lowest level since 1990.

In Tokyo, Panasonic was up 1.39 percent at 1,055 yen, Canon was up 0.95 percent at 3,307 yen, and Hitachi was up 1.70 percent at 6,531 yen.

The banking sector was higher, with Mitsubishi UFJ Financial trading up 1.41 percent at 684.8 yen, Sumitomo Mitsui Financial up 0.41 percent at 4,118 yen, and Mizuho Financial up 0.83 percent at 1,639 yen.