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Tokyo: Stocks open higher on optimism over economy, trade

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[TOKYO] Tokyo stocks opened higher on Tuesday on improved sentiment after US shares rallied on positive US and Chinese manufacturing data with optimism rising over US-China trade talks.

The benchmark Nikkei 225 index rose 0.98 per cent or 210.47 points to 21,719.50 in early trade, while the broader Topix index was up 0.86 per cent or 13.92 points at 1,629.73.

"US shares rallied thanks to an improvement in US and Chinese manufacturing data... and the Japanese market is seen gaining, encouraged by US rallies and a cheaper yen" against the dollar, Toshiyuki Kanayama, senior market analyst at Monex, said in a commentary.

Analysts also cited optimism over US-China trade talks as a positive driver.

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The dollar fetched 111.38 yen in early Asian trade, up from 111.35 yen in New York and 111.13 yen in Tokyo on Monday.

In Tokyo, steelmakers were higher, with Nippon Steel up 1.71 per cent at 2,047 yen, and JFE up 2.21 per cent at 1,986 yen.

China-linked shares were also higher, with construction machine maker Komatsu climbing 1.79 per cent at 2,697 yen, industrial robot maker Fanuc up 2.09 per cent at 19,740 yen and electronic parts maker Rohm up 2.92 per cent at 7,400 yen.

On Wall Street, the Dow ended up 1.3 per cent at 26,258.42.

AFP