Tokyo shares open higher on weak yen, higher oil

Tokyo stocks opened higher on Monday led by exporters as the dollar jumped against the yen ahead of an expected US interest rate hike.

Investors are widely anticipating that the US Federal Reserve will raise its benchmark interest rate in the coming week for only the second time in a decade.

With Japanese rates still low, including some in negative territory, the yen stands to lose further ground against the dollar as rates rise in the US, making that country's assets more attractive for investors.

The greenback was near its highest level since February, changing hands at 115.57 yen early Monday against 115.29 yen in New York Friday afternoon and 114.41 yen in Asia.

"The yen weakness, and dollar strength, on the back of rising US interest rates will lift expectations to another level for better earnings from exporters, starting with the automakers," said Shinichi Yamamoto, a senior strategist at Okasan Securities Co.

"A wide range of industry groups will be bought including financial stocks that could hope for recovery in profits, as market interest rates rise," he told Bloomberg News.

A weaker yen is positive for the Japanese stock market as it increases the profitability of exporters.

Tokyo's benchmark Nikkei 225 index, which ended last week at a fresh high for the year, added 0.92 percent, or 175.05 points, to 19,171.42 in the first few minutes of trade.

The broader Topix index of all first-section issues was up 0.67 percent, or 10.29 points, to 1,535.65.

Honda was up 1.55 percent at 3,527 yen and Nintendo gained 2.95 percent to 30,120 yen.

Mizuho Financial Group climbed 1.39 percent to 224.9 yen.

Energy stocks also rose on a weekend deal by Russia and 10 other non-OPEC states to cut oil output.

The deal followed the November 30 accord of the OPEC cartel, launching an exceptional bid to end the world's glut of crude and reverse a dramatic fall in income.

Japan Petroleum jumped 6.81 percent to 2,979 yen. Inpex, meanwhile, rose 2.00 percent to 1,273 yen.