Tokyo stocks open higher on optimism over US economy

Tokyo stocks opened higher on Wednesday after fresh records on Wall Street as optimism over the US economy lifted Japanese carmakers.

The benchmark Nikkei 225 index rose 0.22 percent, or 45.82 points, to 20,659.89 in early trade while the broader Topix index was up 0.17 percent, or 2.88 points, at 1,687.34.

All three major US equity indices finished at records again Tuesday as a surge in automobile sales following US hurricanes kept the bull market alive.

Masayuki Kubota, chief strategist at Rakuten Securities, said foreign investors were buying back Japanese stocks in the past weeks.

"Worries over a slowdown in the US economy eased, sending US interest rates higher and pushing the yen down," he said in a note to clients.

Japan's economy and corporate earnings are also recovering while the North Korean crisis has seen a lull, Kubota added.

The dollar was trading at 112.63 yen Wednesday, slightly down from 112.84 yen in New York Tuesday afternoon but much stronger than levels below 110 yen seen a month ago.

A lower yen is positive for Japanese exporters as it inflates their repatriated profits while making their products more competitive abroad.

Shares in Japanese carmakers rose after they chalked up robust US sales in September.

Toyota rose 0.45 percent to 6,778 yen and Nissan rose 0.81 percent to 1,111.5 yen.

Fast Retailing, the operator of Uniqlo clothing stores, jumped 2.10 percent to 34,890 yen after reporting brisk domestic sales for September.