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Tokyo: Stocks open higher on trade deal hopes
[TOKYO] Tokyo stocks opened higher on Thursday after US stocks rallied on upbeat reports about US-China trade talks that offset lacklustre US economic data.
The benchmark Nikkei index climbed 0.78 per cent or 180.89 points to 23,316.12 in early trade while the broader Topix index was up 0.58 per cent or 9.91 points at 1,713.18.
"Japanese shares are seen rebounding encouraged by rallies in US stocks and a lull in the appreciation of the yen," Yoshihiro Ito, chief strategist at Okasan Online Securities, said in a commentary.
The market is rebounding due to "expectations for a US-China deal on trade", he said.
Citing people familar with the talks, Bloomberg News said US negotiators saw a deal being finalised before US tariffs against China are due to rise on Dec 15.
The US dollar fetched 108.85 yen in early Asian trade, against 108.88 yen in New York.
In Tokyo, some major electronics manufacturers were higher, with Panasonic gaining 1.35 per cent to 1,048.5 yen and Sony trading up 0.80 per cent at 7,155 yen.
Oil-linked shares and commodities were also higher reflecting a rebound in global stocks, with Japan Petroleum Exploration jumping 3.26 per cent to 2,939 yen, crude oil developer and distributor Inpex climbing 2.17 per cent to 1,080 yen, and Sumitomo Metal Mining advancing 1.47 per cent to 3,297 yen.
On Wall Street, the Dow ended up 0.5 per cent at 27,649.78.