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Tokyo stocks open higher with improved sentiment

Tokyo stocks opened higher on Tuesday with a tailwind from gains on Wall Street as investor sentiment improved, partly thanks to optimism over US-China trade talks.

The benchmark Nikkei 225 index added 0.82 percent, or 168.82 points, to 20,202.79 in early trade, while the broader Topix index was up 0.55 percent, or 8.25 points, at 1,520.78.

The US gains came amid continued relief after Federal Reserve Chair Jerome Powell on Friday signalled a more cautious approach to further interest rate increases.

"As the pace of (the Fed's) rate hikes is being reviewed, investor sentiment is significantly improving," Yoshihiro Ito, chief strategist at Okasan Online Securities, said in a commentary.

Some analysts also attributed the gains to optimism at the resumption of trade talks between mid-level US and Chinese officials.

In Tokyo, Toyota was up 0.71 percent at 6,593 yen and Honda up 1.67 percent at 3,039 yen.

Nissan was down 0.64 percent at 887.3 yen, with its ex-chief Carlos Ghosn set to appear in a Tokyo court -- his first public appearance since his shock arrest in November.

Olympus surged 6.12 percent to 3,550 yen after a brokerage firm revised up its evaluation of the stock's value.

China-linked shares were also higher, with industrial robot maker Fanuc gaining 2.55 percent to 17,055 yen and construction machinery giant Komatsu trading up 0.61 percent at 2,460.5 yen.

The dollar fetched 108.71 yen in early Asian trade, against 108.74 yen in New York.

On Wall Street, the Dow ended up 0.4 percent at 23,531.35.