Tokyo stocks open up 0.84% TOKYO stocks have opened 0.84 per cent higher, backed by brighter economic outlooks for the United States and Japan. The Nikkei 225 index was up 116.65 points to 13,969.15 at the start on Tuesday. Japan shares are technically overheated. However... supply and demand conditions are good," said Hiroichi Nishi, general manager of equities at SMBC Nikko Securities. The benchmark index rose 1.28 per cent on Monday following a big jump in the Bank of Japan's quarterly business confidence survey. US stocks spent Monday in positive territory on generally strong manufacturing data, although leading indices closed well below their intraday highs. The Dow Jones Industrial Average gained 65.36, or 0.44 per cent, to close at 14,974.96. The ISM purchasing managers index rose to 50.9 in June from a contraction reading of 49.0 in May although manufacturing employment fell. The US dollar was at 99.61 yen in early Asian trade on Tuesday against 99.66 yen in New York late on Monday. The euro, which rose on Monday after eurozone manufacturing data came in better than expected, bought $US1.3067 ($A1.42) and 130.14 yen compared with $US1.3061 and 130.17 yen in US trade.