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Tokyo: Stocks open higher on hopes for China trade deal

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Stocks opened higher on Monday tracking rallies on Wall Street following upbeat comments from US trade officials about progress in talks with China.

[TOKYO] Stocks opened higher on Monday tracking rallies on Wall Street following upbeat comments from US trade officials about progress in talks with China.

The benchmark Nikkei 225 index was up 0.28 per cent or 62.78 points at 22,862.59 in early trade, while the broader Topix index was up 0.15 per cent or 2.45 points at 1,650.89.

"US indexes rallied on the backdrop of brisk corporate earnings and progress in the US-China trade talks," Hirokazu Kabeya, chief global strategist at Daiwa Securities, said.

The Japanese market got a tailwind from the rallies in US shares, analysts said.

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The focus this week includes China's manufacturing PMI data due on Thursday, as investors are watching the extent of impact from the trade war with the US, Kabeya said.

Investors are also closely watching the US Federal Reserve's policy decision on Wednesday and the Bank of Japan's policy decision on Thursday, he added.

The dollar fetched 108.73 yen in early Asian trade, against 108.67 yen in New York late Friday.

In Tokyo, Canon was down 0.13 per cent at 2,946 yen ahead of its third quarter earnings report to be released after the market close later in the day.

Industrial robot maker Fanuc was up 1.53 per cent at 21,530 yen ahead of its second quarter earnings report also due after the market close.

Other China-linked shares were also higher, with electronic parts maker Rohm trading up 1.49 per cent at 8,800 yen and construction machine maker Komatsu up 1.35 per cent at 2,586.5 yen.

On Wall Street, the Dow ended up 0.6 per cent at 26,958.06.

AFP