Japanese shares rise after Xi's speech

Japanese shares surged in late morning trade on Tuesday, as automakers rose after Chinese President Xi Jinping promised to lower import tariffs on products including cars this year.

The comments come amid rising trade tensions between China and the United States following a week of escalating tariff threats sparked by US frustration with China’s trade and intellectual property policies.

The growing rift between the world’s two largest economic countries is worrying financial markets over potential damage to global growth.

At the midday break, the Nikkei rose 1.1 per cent to 21,913.06, after trading in negative territory earlier.

The transport equipment sector gained 1.5 per cent and was the third-biggest gainer on the board, with Toyota Motor Corp surging 1.9 per cent, Honda Motor Co jumping 2.1 per cent and Mazda Motor Corp gaining 1.0 per cent, reports Reuters.

Companies with large exposure to China also staged a rally.

Industrial robot maker Fanuc Corp soared 3.1 per cent, machine tool maker Okuma gained 2.5 per cent and construction machinery maker Komatsu advanced 2.9 per cent.

The broader Topix gained 0.9 per cent to 1,740.78.