Tokyo  - Tokyo stocks opened modestly higher Monday as investors bought back battered shares, but gains were capped due to anxiety over the slowdown of Japan's economic growth.

The Nikkei 225 Stock Average edged up 98.8 points, or 1.17 per cent, to 8,561.19.

The broader Topix index of all first-section issues was also up 6.31 points, or 0.75 per cent, to 853.22.

The government announced Monday that the nation's economy shrank at an annualized rate of 0.4 per cent in real terms in the July-September period.

The gross domestic product (GDP) fell 0.1 per cent during the three months from the previous quarter, reported the Cabinet Office.

On currency markets at 9 am (0000 GMT), the dollar was quoted at 96.19-24 yen, down from Friday's 5 pm quote of 96.87-90 yen.

The euro was quoted at 1.2518-23 dollars, down from Friday's 5 pm quote of 1.2706-09 dollars, and at 120.45-55 yen, down from 123.11-15 yen. (dpa)