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Tokyo's Nikkei snaps four-day losing streak

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[TOKYO] Tokyo's benchmark Nikkei index snapped a four-day losing streak on Friday, tracking Wall Street gains on optimism about US-EU trade talks despite Washington's escalating trade war with China.

The Nikkei 225 index advanced 1.12 per cent, or 241.15 points, to close at 21,788.14. Over the week, the index dropped 2.32 per cent.

The broader Topix was up 0.92 per cent, or 15.34 points, at 1,691.54. Over the week, it was down 2.27 per cent.

"The Tokyo market took the positive lead from New York," said Hikaru Sato, senior technical analyst at Daiwa Securities.

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"A possible compromise between the US and EU is good news for Japan as well," Mr Sato told AFP.

The US ambassador in Berlin, Richard Grenell, told bosses of Germany's biggest car firms that Washington was calling on the EU to bring tariffs to zero on car imports - in exchange for equal treatment by the US.

The US is studying the possibility of imposing tariffs on cars on national security grounds.

Stocks rose despite the imposition on Friday of long-threatened US tariffs on Chinese products, which Beijing has said will provoke retaliatory measures.

"The market has already factored in the impact of the present stage of the US-China trade dispute, but the issue could affect the market positively or negatively at any time in the future," Mr Sato said.

The dollar fetched 110.73 yen in Asian afternoon trade, compared with 110.64 yen in New York.

Carmakers were higher with Toyota gaining 1.07 per cent to 7,162 yen and Honda jumping 1.38 per cent to 3,228 yen.

Sony surged 1.98 per cent to 5,450 yen with Panasonic up 0.24 per cent at 1,410 yen.

AFP