Tokyo stocks open higher on Wall St rally

TOKYO, Japan (Reuters) -- Tokyo stocks got off to a firm start on Tuesday, extending the previous session's six percent jump after another big rally on Wall Street inspired investors to snap up Toshiba Corp and other high-tech shares.

The benchmark Nikkei average was up 0.99 percent or 112.80 points at 11,563.02 by 0006 GMT. It soared 5.9 percent on Monday to bring its 14-day relative strength index well above the 70 overbought line to 86.

Traders said the market was getting a bit overheated, and would struggle to repeat the previous session's performance.

"Banks and techs are up, but more so than yesterday losers are emerging," said Masaru Kazama, head of equities at Nissan Securities.

"We should hold firm, but not move much higher today above current levels."

The capital-weighted TOPIX index rose 1.06 percent or 11.44 points to 1,090.48, underpinned by higher banking shares.

Mizuho Holdings Inc, the world's largest banking group by assets, was bid-only with no sellers at 311,000 yen, 4.7 percent above Monday's close.

Mizuho climbed 14 percent a day earlier after the weekend failure of debt-ridden builder Sato Kogyo Co Ltd was taken as a sign banks were speeding up the disposal of their huge bad loans.

Tobishima Corp, Sato Kogyo's peer, fired up 34.29 percent to 47 yen after the Nihon Keizai Shimbun business daily said on Tuesday the debt-ridden builder has agreed to tie up with Taisei Corp, a stronger general contractor.

Taisei fell 1.22 percent to 325 yen.

In the tech sector, chip giant Toshiba rose 1.48 percent to 547 yen, chasing a run by its U.S. peers.

On Monday, the tech-heavy Nasdaq index put on 3.14 percent to 1,859.32, while the Philadelphia semiconductor index added 5.93 percent to Friday's 11 percent climb.

Among the morning's losers, Bridgestone Corp shed 1.06 percent to 1,781 yen, with investors pocketing profits on the tyremaker's shares after their 24 percent rise since the start of February.