Japan's Nikkei hits three-month peak on Wall Street gains, weaker yen

Japan's Nikkei share average touched a three-month high in early trade on Tuesday, as a strong performance on Wall Street overnight and a weaker yen buoyed investor sentiment.

The Nikkei .N225 was up 1.2 per cent at 40,090.35, as of 0013 GMT, while the broader Topix .TOPX was up 0.9 per cent as Japanese markets reopened after a public holiday on Monday.

Wall Street ended higher on Monday, with both the S&P 500 .SPX and the Dow Jones Industrial Average .DJI posting fresh record finishes, as investors bought into technology stocks ahead of a busy week packed with corporate earnings and crucial economic data. 

Japanese equities were also supported by a softer yen, since a weaker domestic currency tends to boost exporters' overseas earnings when repatriated. The yen was not far off Monday's low of 149.98, its lowest level against the dollar since early August. 

Heavyweights SoftBank Group Corp 9984.T, Tokyo Electron 8035.T, Advantest 6857.T, Fast Retailing 9983.T and Toyota Motor 7203.T were all trading higher.