Tokyo stocks open higher extending US rally

TOKYO: Tokyo stocks opened higher on Friday, extending gains on Wall Street, which was buoyed by the Federal Reserve's indicating it could soon unwind its easing, in line with market expectations.

The benchmark Nikkei 225 index was up 1.66 percent or 491.91 points at 30,131.31 while the broader Topix index advanced 1.57 percent or 32.08 points to 2,075.63.

"Investors in Japanese shares are buying back as worries over China's Evergrande receded, and following the results of the US Federal Reserve's policy meeting," senior strategist Yoshihiro Ito of Okasan Online Securities said in a note.

Investors are feeling better about embattled Evergrande's situation following steps by Beijing to avoid a domino effect from the property giant's debt problems.

Federal Reserve Chair Jerome Powell said the US central bank was near to starting the tapering of asset purchases. Many expect the Fed will announce the shift in November.

"Shares sensitive to economic cycles are likely to be bought on speculation" that the Federal Reserve's rate hike will not come immediately, Okasan's analysts said.

Among major shares in Tokyo, Nippon Steel jumped 3.74 percent to 2,107 yen after the business daily Nikkei reported the steelmaker's performance this full year could be better than the current estimates, citing the company vice president.

Sony climbed 3.32 percent to 12,770 yen after reports said the company's Indian unit is looking to take over TV network Zee Entertainment.

The dollar fetched 110.38 yen in early Asian trade, against 110.26 yen in New York late Thursday.