Tokyo stocks bounce off lows

TOKYO, Japan -- Tokyo shares open higher on Tuesday after hitting a 16-year closing low the previous day, buoyed by firm gains in several chip issues including Kyocera Corp in the wake of a bounce in their U.S. peers.

U.S. technology stocks rose for the first time in the past seven sessions on Monday, with the tech-laden Nasdaq gaining 1.32 percent to 1,982.25, cheered by upgrades by Goldman Sachs on Intel Corp and other chipmakers.

Kyocera, the world's biggest maker of IC ceramic packages, firmed 0.84 percent to 8,400 yen, helping send the tech-sensitive Nikkei stock average up 149.01 points or 1.30 percent at 11,626.57 in the first five minutes of trade.

The Nikkei ended on Monday down 2.19 percent at 11,477.56, its lowest close since December 24, 1984 when it finished at 11,439.87. Kyocera was down by its daily limit of 1,000 yen or 10.72 percent at 8,330.

But caution remains as several technology issues have just started to factor in a worsening in earnings prospects after two core players -- Advantest Corp and Rohm Co Ltd -- unveiled late last week profit warnings for this business year.

"Stocks may stop falling, but that's about it for today," said Kazunori Jinnai, general manager at Daiwa Securities SMBC's equity department. "I think the market will keep warning the BOJ that it must implement more (easing) measures by failing to post any big gains," he said.

The Bank of Japan (BOJ) will end its two-day policy-setting meeting in the afternoon, with few expecting dramatic change.

The broader, capital-weighted TOPIX gained 14.83 points or1.27 percent to 1,181.92.

Australian stocks generally weaker

In Australia, the All Ordinaries index was 6 points lower at 3321.2 after an hour of trading as investors remain uninspired by a benign assessment of Australia's economy by the Reserve Bank issued Monday.

Market leader News Corporation continued to plunge, shedding 18c to A$17.87 in early business while fellow heavyweight Telstra lost 1c to A$5.08.

Major bank stock National Australia Bank was also weaker, losing 15c to A$34.27, but bucking the trend, resources giant BHP Billiton gained 12c to A$9.42.

In Korea the Kospi defied the general Asian gloom to trade 5.5 points higher at 567.5 in early business, while in Taiwan the Taiwan Index was also firmer, up 21.68 points to 4542.44 soon after the open.

Reuters contributed to this report.