TOKYO, Dec 20 ― Tokyo shares opened fractionally higher today after US stocks roared to fresh records overnight, thanks to receding concerns over US-China trade tensions.

The headline Nikkei index added 0.10 per cent or 24.94 points to 23,889.79 in early trade, while the broader Topix index edged up 0.02 per cent or 0.39 points to 1,736.50.

All three major US indices advanced to new records overnight with easing of US-China tension while a new continental trade agreement with the US, Canada and Mexico advancing in Congress.

It encouraged Tokyo investors, who were eager to return to buying after recent profit taking had drove down the market, analysts said.

"Tokyo shares are expected to rebound, on the back of gains of US shares overnight,” Okasan Online Securities said in a note.

"On top of bright external factors, dip-buying should gradually return to the market after recent profit taking,” Okasan said.

The market essentially shrugged off a historic impeachment of US President Donald Trump, with most pundits believing the controversial leader will stay in power with support from the US Senate, controlled by the Republican Party.

"The market basically ignored the impact of the impeachment,” Okasan said.

Meanwhile, Tokyo players remained wary about the yen's relative strength, with the dollar standing at ¥109.38 this morning, compared with ¥109.36 (RM4.14) in New York overnight and ¥109.59 in Tokyo yesterday.

Investors are also starting to adjust their positions ahead of the New Year holiday break, putting further pressure on the market, Okasan added.

Among major shares, Uniqlo-operator Fast Retailing added 0.14 per cent to ¥66,510.

Energy firm Inpex rose 1.04 per cent to ¥1,162.5.

A higher yen hit exporters.

Toyota dropped 0.88 per cent to ¥7,762. Sony lost 1.56 per cent to ¥7,337. Construction equipment maker Komatsu fell 1.03 per cent to ¥2,654.5. ― AFP