Tokyo stocks hit new peaks in early trade

TOKYO - Tokyo stocks opened with gains on Monday after Wall Street hit fresh all-time highs and Japan's benchmark Nikkei index broke its bubble-era record last week.

The Nikkei 225 index was up 0.68 percent, or 265.38 points, at 39,364.06 in early trade, while the broader Topix index added 0.61 percent, or 16.24 points, to 2,676.95.

US stock markets finished mixed on Friday, with the Dow and the S&P 500 hitting fresh peaks, while the Nasdaq slipped slightly following Thursday's Nvidia-fuelled surge.

"The Japanese market is expected to start with gains, as the Dow and S&P 500 renewed records, while the Nasdaq also rose above its record during trade hours," senior market analyst Toshiyuki Kanayama of Monex said.

Looking ahead, "all the talk is about the PCE this week," said Stephen Innes, of SPI Asset Management, referring to the US Department of Commerce's inflation data which could affect the Federal Reserve's interest rate decisions.

The dollar fetched 150.49 yen in early Asian trade, against 150.53 yen in New York on Friday.

Among major shares in Tokyo, drugmaker Daiichi Sankyo was up 1.50 percent at 4,991 yen, Mitsubishi UFJ Financial Group was up 1.41 percent at 1,511 yen, and construction machine maker Komatsu was up 1.03 percent at 4,314 yen.

SoftBank Group was up 0.42 percent at 8,837 yen. Chip-testing equipment maker Advantest was up 0.41 percent at 7,117 yen.