Tokyo Stocks Open Higher on Robust US Growth Data

Tokyo stocks opened 0.55 per cent higher on Thursday, boosted by robust US growth data and the yen's fall to its lowest level in nearly four months against the dollar.

The Nikkei 225 index was up 86.55 points at 15,732.78 at the start.

"(An) optimistic view is spreading for the global economic outlook," said Hiroichi Nishi, general manager of equity at SMBC Nikko Securities.

The US Commerce Department reported the economy rebounded to a 4.0 per cent pace of growth in the April-June period after the sharp contraction of the first quarter.

The dollar jumped to 103.09 yen in New York trading on Wednesday, its highest level since early April, before coming off to 102.81 yen later.

The greenback was changing hands at 102.82 yen in early Asian trade Thursday, almost flat from New York late Wednesday but sharply up from 102.11 yen in Tokyo earlier Wednesday.

A weak yen is positive for Japanese exporters as it makes them more competitive abroad.

The euro bought $1.3394 and 137.76 yen on Thursday against $1.3395 and 137.73 yen in US trade.

Wall Street stocks Wednesday finished mixed after the US Federal Reserve kept interest rates near zero and government data showed strong second-quarter US economic growth.

The Dow Jones Industrial Average slipped 0.19 per cent, while the tech-rich Nasdaq Composite Index gained 0.45 percent.

The broad-based S&P 500 essentially split the difference, rising a mere 0.01 per cent.

Argentina was effectively pushed into default Wednesday, as last-ditch talks between Buenos Aires and the US hedge funds it has branded "vultures" failed.