TOKYO - JAPAN'S Nikkei stock index opened 1.29 per cent higher on Wednesday after a strong overnight rally on Wall Street amid hopes for a US government rescue for ailing Detroit automakers.

The benchmark index gained 101.62 points to 7,965.31 in the first minute of trading.

In New York, the Dow Jones Industrial Average rallied 270.00 points or 3.31 per cent on Tuesday, coming off a horrific 679-point loss the previous day.