Japanese shares jump on trade talk optimism

Japan’s Nikkei rose on Monday, the first day of the new fiscal year, on US-Sino trade talk hopes and as brisk Chinese manufacturing surveys lifted China-related stocks, which offset weak domestic corporate sentiment.

The Nikkei share average surged 2.1 per cent to 21,655.51 in midmorning trade, reports Reuters.

Companies with large exposure to the Chinese market gained ground. Yaskawa Electric jumped 7.6 per cent, Fanuc Corp soared 3.9 per cent and Komatsu Ltd surged 3.7 per cent.

Japan Display Inc was in the spotlight, rising 11 per cent after the company confirmed a weekend media report that it is in talks with external parties in cooperation with top shareholder INCJ.

Daiichi Sankyo Co extended its gains and soared 10 per cent on its cancer drug partnership with AstraZeneca Plc.

AstraZeneca will pay up to 6.9 billion US dollar to work with Daiichi Sankyo on a hotly-tipped experimental treatment for breast cancer.

The broader Topix gained 2.0 per cent to 1,622.74.