TOKYO (dpa-AFX) - The Japanese stock market is extending gains on Thursday from the previous session, following the positive cues overnight from Wall Street amid optimism about U.S.-China trade relations. Investor sentiment was also boosted by news that British Prime Minister Theresa May has survived a no-confidence vote.
The benchmark Nikkei 225 Index is adding 125.79 points or 0.58 percent to 21,728.54, after rising to a high of 21,776.98 earlier. Japanese shares rallied sharply on widespread buying.
The major exporters are mixed on a slightly stronger yen. Panasonic is advancing more than 1 percent and Canon is up almost 1 percent, while Mitsubishi Electric is declining 0.6 percent and Sony is edging down 0.1 percent.
In the tech sector, Advantest is advancing more than 1 percent, while Tokyo Electron is down 0.4 percent.
Among the major automakers, Honda is rising more than 1 percent, while Toyota is down 0.1 percent. Toyota is recalling about 70,000 Toyota and Lexus brand vehicles in North America to replace air bag inflators.
In the banking sector, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial are adding almost 1 percent each.
In the oil space, Inpex is higher by 0.3 percent and Japan Petroleum is advancing 0.6 percent despite lower crude oil prices overnight.
Oil refiners Idemitsu Kosan Co. and Showa Shell Sekiyu K.K. said that their planned merger has received approval by all relevant antitrust authorities at home and abroad, bringing them a step closer to consolidation on April 1. Shares of Idemitsu Kosan are adding almost 1 percent, while Showa Shell's shares are higher by 0.7 percent.
Among the other major gainers, Takeda Pharmaceutical is rising almost 7 percent, while Fuji Electric and Minebea Mitsumi are gaining more than 3 percent each.
On the flip side, Showa Denko is losing 7 percent and Oki Electric is down 6 percent. Tokai Carbon and Chubu Electric are lower by more than 3 percent each.
In economic news, Japan will provide November figures for office vacancies in Tokyo today.
In the currency market, the U.S. dollar is trading in the lower 113 yen-range on Thursday.
On Wall Street, stocks closed higher on Wednesday after U.S. President Donald Trump expressed optimism about striking a trade deal with Chinese President Xi Jinping in an interview with Reuters on Tuesday.
The Dow climbed 157.03 points or 0.6 percent to 24,527.27, the Nasdaq jumped 66.48 points or 1 percent to 7,098.31 and the S&P 500 rose 14.29 points or 0.5 percent to 2,651.07.
The major European markets also showed strong moves to the upside on Wednesday. While the French CAC 40 Index soared by 2.2 percent, the German DAX Index and the U.K.'s FTSE 100 Index surged up by 1.4 percent and 1.1 percent, respectively.
Crude oil prices ended lower on Wednesday after rising earlier in the session. WTI crude for January delivery declined $0.50 or 1 percent to close at 51.15 a barrel on the New York Mercantile Exchange.
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