Tokyo shares open 1.11% higher

Tokyo stocks opened 1.11 percent higher Monday amid speculation the US Federal Reserve will keep interest rates near zero for longer and an economic downturn will force Japanese policymakers to increase stimulus.

The benchmark Nikkei 225 index at the Tokyo Stock Exchange gained 195.87 points to 17,921.00 in opening deals.

The positive movement also came off the back of overnight news that officials negotiating an ambitious Pacific trade pact were inching closer to announcing a deal.

After days of gruelling talks in Atlanta, Japan's Economy Minister Akira Amari told reporters "major progress" had been made over the Trans-Pacific Partnership, which aims to be the world's largest free trade zone.

Wall Street stocks finished higher on Friday despite a report showing the United States added just 142,000 jobs in September, adding to speculation the US central bank may refrain from raising key interest rates this year while fuelling worries that the US economy is slowing.

"Throughout this year we've had moments when stocks rose on an increased probability of rate increases in the US, but at the end of last week the market saw the probable delay as a positive," Shoji Hirakawa, chief equity strategist at Okasan Securities in Tokyo, told Bloomberg News.

"I expect Japanese stocks to react positively as well."

Analysts expressed alarm over Friday's jobs report, as the number of jobs added was well below estimates of 205,000. The government also trimmed its estimates for jobs added in July and August.

"We are beginning to understand why (Fed chair) Janet Yellen was scared to raise interest rates" at the September policy meeting, Gregori Volokhine, president of Meeschaert Capital Markets, said.

US equities picked up buying momentum in the last hour of trade Friday, after opening sharply lower following the weak employment report.

The Dow Jones Industrial Average climbed 1.23 percent, while the broad-based S&P 500 jumped 1.43 percent, and the tech-rich Nasdaq Composite Index gained 1.74 percent.

On currency markets, the dollar was little changed at 119.99 yen from 119.92 yen Friday in New York.

The euro was trading at $1.1124 and 134.68 yen compared with $1.1219 and 134.53 yen in US trade.