Tokyo stocks open up 1.35 percent

TOKYO – Tokyo stocks opened up 1.35 percent on Monday following a report that the International Monetary Fund is working on a rescue plan for Italy to help tackle the European debt crisis.

The Nikkei 225 index at the Tokyo Stock Exchange opened up 109.90 points at 8,269.91.

Italian newspaper La Stampa reported Sunday that the IMF could bail out Italy with up to 600 billion euros ($800 billion) as Prime Minister Mario Monti came under pressure to speed up austerity measures.

The euro rose to $1.3309 and 103.30 yen in early Asian trade on Monday from $1.3240 and 102.90 yen in New York late Friday. The dollar edged down to 77.62 yen from 77.72 yen.

The Nikkei is unlikely to rise sharply as aggressive selling is unexpected ahead of a meeting of eurozone finance ministers Tuesday, said Yumi Nishimura, senior market analyst at Daiwa Securities.

“It’s not that there are great expectations for Tuesday’s meeting, but there may be some progress,” she told Dow Jones Newswires.

In New York on Friday the Dow Jones Industrial Average fell 0.23 percent in the holiday-shortened session to end at 11,231.78.

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