Tokyo stocks open higher on hopes for Ukraine talks

Tokyo stocks opened higher on Tuesday, extending US gains on hopes over peace talks between Russia and Ukraine, while investors also bought shares to gain rights to receive dividends.

The benchmark Nikkei 225 index rose 0.72 percent, or 202.40 points, to 28,146.29 in early trade, while the broader Topix index was up 0.45 percent, or 8.83 points, at 1,982.20.

"The Japanese market is receiving support from rallies in US shares and a cheaper yen", with Wall Street investors encouraged to buy on hopes talks between Ukraine and Russia will make progress towards a ceasefire, senior market analyst Toshiyuki Kanayama of Monex said in a note.

Tokyo investors were also seeking rights to receive dividends at the end of the current financial year before a Tuesday deadline, he added.

The dollar traded at 123.80 yen in early Asian trade, against 123.83 yen in New York late Monday.

In Tokyo, electronics were among winners, with Sony Group rallying 1.45 percent to 12,905 yen and Panasonic trading up 1.92 percent at 1,221 yen.

Mizuho Financial Group was down 0.24 percent at 1,651.5 yen after it said it would record reserves for possible losses related to Russia, adding that would not impact its net profit forecast.

Shiseido dropped 1.33 percent to 6,093 yen after a report it temporarily shut a factory in Shanghai given the outbreak of coronavirus cases in the Chinese city and lockdown measures.

Japan's unemployment rate in February stood at 2.7 percent, a modest improvement from 2.8 percent in January, according to the internal affairs ministry's data released before the opening bell. The data did not prompt any strong market reaction.