TOKYO: Tokyo stocks opened higher on Monday following Wall Street gains, as investors digested data showing a worse-than-expected contraction of Japan's economy in the Covid-hit third quarter.
The benchmark Nikkei 225 index was up 0.75 percent, or 220.85 points, at 29,830.82 in early trade, while the broader Topix index edged up 0.71 percent, or 14.53 points, to 2,055.13.
"Investors are encouraged to buy stocks following rallies in US shares," Mizuho Securities said in a note, adding traders were closely watching Japan's third-quarter GDP data released before the opening bell.
Japan's economy shrank far more than expected in the three months to September, as a surge in virus cases hit spending and supply chain issues hampered business, data released by the Cabinet Office showed 10 minutes before trade started.
The world's third largest economy shrank 0.8 percent quarter-on-quarter, much worse than the 0.2 percent economists had forecast.
But analysts predict that the slowdown was likely shortlived as Japan's vaccination programme has picked up speed, with the government lifting virus restrictions in October.
Among major shares in Tokyo, Toshiba was up 1.62 percent at 4,951 yen after the conglomerate said it will split into three companies following a campaign by investors to boost the firm's shares after a period of enormous upheaval.
Chip-making equipment manufacturer Tokyo Electron advanced 1.70 percent to 58,610 yen after it revised up full-year operating profit forecast.
Sumitomo Mitsui Financial Group climbed 2.25 percent to 3,951 yen after it revised up its full-year net profit forecast.
The dollar fetched 113.92 yen in early Asian trade, against 113.85 yen in New York late Friday.
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