Tokyo stocks open higher

Tokyo stocks opened higher on Friday, extending rallies on Wall Street, after a contraction of the US economy sparked expectations of a slowdown in Federal Reserve rate hikes.

The benchmark Nikkei 225 index was up 0.25 percent, or 68.16 points, at 27,883.64 in early trade, while the broader Topix index edged up 0.02 percent, or 0.36 points, to 1,949.21.

The dollar fetched 134.59 yen, against 134.25 yen in New York on Thursday.

US GDP data unveiled Thursday showed the world's biggest economy shrank for a second straight quarter between April and June.

"The US economy is weakening much faster than anyone expected," Edward Moya, a senior market analyst at OANDA, said in a note.

"This second-straight contraction will complicate the Fed's plan to aggressively fight inflation," Moya said.

The resulting expectations of a slower rate hike pace triggered significant rallies on Wall Street, which in turn left the market in Japan starting with gains, Toshiyuki Kanayama, senior market analyst of Monex, said in a commentary.

Among major stocks in Tokyo, SoftBank Group rose 1.43 percent to 5,737 yen, Sony Group climbed 1.41 percent to 11,840 yen, and Toyota was up 1.52 percent to 2,157.5 yen.

Uniqlo operator Fast Retailing gained 0.63 percent to 79,390 yen.

Meanwhile, Japan's unemployment rate for June remained flat at 2.6 percent, according to figures released by the internal affairs ministry Friday.

The Labour Ministry separately announced that the ratio of jobs to job-seekers in June improved slightly to 1.27, meaning there are 127 openings for every 100 people seeking employment.