TOKYO, Jan 8 ― Tokyo stocks opened higher today, extending Wall Street rallies, with investors bullish despite Japan's declaring a state of emergency around Tokyo following a jump in new virus cases.

The benchmark Nikkei 225 index was up 0.72 per cent or 198.98 points at 27,689.11 in early trade, while the broader Topix index gained 0.27 per cent or 5.02 points to 1,831.32.

"Japanese shares are seen rising as risk-on sentiment continues, but profit-taking could weigh on the market ahead of US jobs data and a three-day weekend (in Japan),” Okasan Online Securities said.

The dollar fetched ¥103.80 (RM4.04) in early Asian trade against ¥103.81 in New York late yesterday.

In Tokyo, tyre company Bridgestone rallied 3.50 per cent to ¥3,552 after French-Swiss construction giant LafargeHolcim said it will snatch up roofing manufacturer Firestone Building Products, a unit of Bridgestone Americas, for US$3.4 billion.

Among others, chip-testing manufacturer Advantest traded up 3.73 per cent at ¥8,350, electronic parts maker Murata Manufacturing rose 2.16 per cent at ¥9,794, and chip and other parts maker Rohm gained 3.46 per cent at ¥10,480.

Japan's household spending in November was up 1.1 per cent on-year, the second consecutive monthly rise, which did not prompt major market reaction.

On Wall Street, the Dow ended up 0.7 per cent at 31,041.13, its first ever close above 31,000 points. ― AFP