Global rally lifts Tokyo stocks in early trade

Tokyo stocks rose on the back of a rally on global markets in early trade Wednesday, with automakers including Toyota and Honda rebounding from the previous session's sharp losses.

Investors are now awaiting a closely watched speech by Federal Reserve chief Janet Yellen at the Jackson Hole symposium of global central bankers Friday, hoping she will shine some light on the near-term direction of US monetary policy.

"Oil prices are recovering, and the environment is fairly calm. I expect Japanese shares to do relatively well," Chihiro Ohta, a senior strategist with SMBC Nikko Securities, told Bloomberg news.

"That said, we're all about waiting for Jackson Hole now."

About 30 minutes after the opening bell, the benchmark Nikkei 225 index climbed 0.84 percent, or 139.17 points, to 16,636.53, rebounding from a drop the previous day.

The broader Topix index of all first-section shares rose 0.92 percent, or 11.91 points, to 1,309.47.

In forex markets, the dollar rose to 100.44 yen from 100.23 yen Tuesday in New York.

A weaker yen is a plus for Japan's exporters as it boosts their overseas profitability.

In early Tokyo share trading, Toyota surged 1.9 percent, Nissan advanced 2.7 percent and Honda tacked on 1.6 percent. Mazda was also up, rising 2.8 percent.

On Wall Street, major indices gained in cautious trade on Tuesday with the Dow closing 0.1 percent higher, the broad-based S&P 500 up 0.2 and the tech-rich Nasdaq adding 0.3 percent.

In Europe, Frankfurt, London and Paris were also up.

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