Tokyo stocks open up 1.03%

TOKYO (AFP) - Tokyo stocks opened 1.03 per cent higher Tuesday on a weaker yen and continued advances on Wall Street, extending gains after jumping more than two percent the previous day.

The Nikkei 225 index, which soared 2.07 per cent on Monday to close at a two-month high, added 153.12 points to 15,089.04 at the start.

"The weaker yen, along with hopes for Prime Minister Abe's economic reform package and more government pension exposure to stocks could push the market decisively through 15,000," said Okasan Securities director Takashi Matsumoto.

Prime Minister Shinzo Abe is expected to announce a new package of policies in June to stoke growth in the world's third largest economy.

In New York the Dow and S&P 500 Monday again rose to record highs following a solid report on US manufacturing activity.

The Dow Jones Industrial Average advanced 0.16 per cent to 16,743.63, while the S&P 500 added 0.07 per cent to 1,924.97. Both indices notched closing records for the third straight session.

The dollar also rose Monday on the solid manufacturing data.

The greenback was at 102.41 yen early Tuesday, up from 102.36 yen in New York Monday afternoon and 102.02 yen in Tokyo earlier Monday.

A weak yen is positive for Japanese exporters as it makes them more competitive abroad and increases profits when repatriated.

The euro was under pressure from expectations of an interest rate cut by the European Central Bank, buying US$1.3596 and 139.25 yen on Tuesday against US$1.3595 and 139.19 yen in US trade.