Nikkei open 1.25% higher

Tokyo stocks opened 1.25 percent higher Tuesday, lifted by generally strong performances on Wall Street and European markets overnight.

The Nikkei index at the Tokyo Stock Exchange rose 175.70 points to 14,285.04 in first minutes of trading.

"The upbeat mood for equities heading into the start of US earnings reporting season should have a generally positive influence on stocks," said Hiroichi Nishi, SMBC Nikko Securities general manager of equities.

"Results from financials, including JP Morgan Chase later this week, will be closely watched," Nishi told Dow Jones Newswires.

On Monday, the Nikkei gave up earlier gains and ended down 1.40 percent, driven lower by weakness in other Asian bourses.

A relatively stable dollar was the key for the Tokyo market to sustain the current momentum, Nishi added.

The US currency stood at 101.05 yen, nearly flat from 100.99 yen in New York Monday.

The euro bought $1.2860 and 129.84 yen, also little changed from $1.2868 and 129.96 yen in New York.

Overnight, the Dow Jones Industrial Average rose 88.85 points, or 0.59 percent, to 15,224.69.

The broad-based S&P 500 increased 8.57 points, or 0.53 percent, to 1,640.46, while the tech-rich Nasdaq Composite Index added 5.45 points, or 0.16 percent, to 3,484.83.