AFP, Tokyo

Tokyo’s benchmark Nikkei index jumped more than 1.7 percent on Tuesday to its highest level in nearly 13 months after Wall Street shares surged on optimism over US-China trade talks.

The Nikkei 225 index gained 1.76 percent, or 401.22 points, to close at 23,251.99, the highest level since October 10 last year. The broader Topix index was up 1.66 percent, or 27.66 points, at 1,694.16.

The Japanese market opened higher after a three-day weekend, taking a positive lead from rallies in all three main US indices, analysts said.

Wall Street shares surged to fresh records, with analysts citing remarks from US Commerce Secretary Wilbur Ross that “phase one” of the trade agreement between Beijing and Washington was on track, and hinting that the United States may not impose tariffs on car imports from Europe and Japan.

“The Tokyo market doesn’t seem to be overheating,” said Toshikazu Horiuchi, a broker at IwaiCosmo Securities. “Japanese shares are still moving up, as positive factors are overwhelming negative ones,” Horiuchi told AFP.

The dollar fetched at 108.77 yen in Asian afternoon trade, against 108.58 yen in New York on Monday.

Investors were also watching Japanese corporate earnings reports this week, with SoftBank Group due on Wednesday and Toyota due on Thursday, analysts said.

Among major shares in Tokyo, automakers were higher, with Toyota gaining 1.28 percent to 7,648 yen and Honda trading up 2.28 percent at 3,022 yen.

Mazda gained 2.11 percent to 1,014 yen after it reported better-than-expected second-quarter operating profits.

Fujifilm surged 6.74 percent to 5,066 yen. After the market closed, it confirmed a news report that it will take 100 percent ownership of Fuji Xerox by buying Xerox’s 25 percent stake in the firm.

SoftBank Group jumped 2.43 percent to 4,294 yen.

Its mobile unit SoftBank Corp was down 0.13 percent at 1,499 yen. Following the closing bell, the company said its sales and profit rose for the six months to September, while leaving its full-year forecast unchanged.