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Japanese Market Advances

The Japanese stock market is advancing on Monday, with investor sentiment bolstered by the gains on Wall Street Friday as well as on news that U.S. President Donald Trump and his Chinese counterpart Xi Jinping have agreed to a 90-day truce in the escalating trade war between the two countries.

The benchmark Nikkei 225 Index is rising 286.16 points or 1.28 percent to 22,637.22, after touching a high of 22,677.29 earlier. Japanese shares hit a three-week high in cautious trading on Friday.

The major exporters are higher on a stronger yen. Sony is gaining almost 3 percent and Canon is advancing almost 2 percent, while Panasonic and Mitsubishi Electric are higher by more than 1 percent each.

Among the major automakers, Toyota is rising more than 3 percent and Honda is advancing 2 percent. In the banking sector, Mitsubishi UFJ Financial is adding almost 2 percent and Sumitomo Mitsui Financial is higher by more than 1 percent.

In the tech sector, Advantest is rising almost 3 percent and Tokyo Electron is adding more than 1 percent.

In the oil space, Inpex is up 0.6 percent and Japan Petroleum is advancing almost 2 percent despite lower crude oil prices.

Among the other major gainers, Screen Holdings and Taiyo Yuden are rising almost 6 percent each, while Nippon Yusen, Tokai Carbon and Mitsui OSK Lines are higher by more than 5 percent each.

On the flip side, Chughai Pharmaceutical, Nippon Paper, Sky Perfect JSAT and Kikkoman Corp. are lower by more than 1 percent each.

On the economic front, the manufacturing sector in Japan continued to expand in November, albeit at a slower pace, the latest survey from Nikkei revealed with a manufacturing PMI score of 52.2. That's down from 52.9 in October, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

Japan will also release third-quarter data for capital spending and company profits today.

In the currency market, the U.S. dollar is trading in the upper 113 yen-range on Monday.

On Wall Street, stocks closed higher on Friday, reflecting optimism ahead of a highly anticipated meeting between President Donald Trump and Chinese President Xi Jinping on the sidelines of the G20 summit in Buenos Aires, Argentina. Ahead of the meeting, Trump offered mixed remarks about the likelihood the U.S. and China will reach an agreement to end the escalating trade dispute between the world's two largest economies.

The Dow climbed 199.62 points or 0.8 percent to 25,538.46, the Nasdaq advanced 57.45 points or 0.8 percent to 7,330.54 and the S&P 500 rose 22.40 points or 0.8 percent to 2,760.16.

The major European markets all moved to the downside on the day. While the French CAC 40 Index edged down by 0.1 percent, the German DAX Index fell by 0.4 percent and the U.K.'s FTSE 100 Index slid by 0.8 percent.

Crude oil prices slipped on Friday as demand growth worries resurfaced after China reported its weakest factory growth in more than two years. WTI crude for January fell $0.52 or 1 percent to settle at $50.93 a barrel on the New York Mercantile Exchange.

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