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Japanese Market Extends Gains

The Japanese stock market is extending gains on Tuesday from the previous session following the positive cues overnight from Wall Street amid optimism over the U.S.-China trade talks currently underway in Beijing.

The benchmark Nikkei 225 Index is rising 117.76 points or 0.59 percent to 20,156.73, after touching a high of 20,258.50 in early trades. Japanese shares ended notably higher on Monday.

The major exporters are mixed despite a weaker yen. Mitsubishi Electric is advancing almost 1 percent and Panasonic is adding 0.3 percent, while Sony is declining 0.5 percent and Canon is edging lower by 0.1 percent.

In the tech sector, Advantest is losing almost 2 percent while Tokyo Electron is rising more than 1 percent. Among the major automakers, Honda is advancing almost 2 percent and Toyota is adding more than 1 percent.

In the banking sector, Mitsubishi UFJ Financial is higher by almost 2 percent and Sumitomo Mitsui Financial is advancing almost 1 percent. In the oil space, Inpex is rising more than 2 percent and Japan Petroleum is gaining almost 3 percent after crude oil prices rose more than 1 percent overnight.

Takeda Pharmaceutical, which completed its acquisition of Irish drugmaker Shire plc on Monday, said it expects its annual consolidated sales to nearly double to $31.3 billion following the acquisition. The company's shares are higher by more than 2 percent.

Among the other major gainers, Tokai Carbon is gaining more than 8 percent, Olympus Corp. is higher by more than 6 percent and Showa Denko is rising more than 4 percent.

On the flip side, Seven & I Holdings and Shiseido Co. are losing almost 3 percent each, while Kao Corp., Kikkoman Corp. and Ricoh Co. are declining more than 2 percent each.

On the economic front, Japan will release December results for its consumer confidence index today.

In the currency market, the U.S. dollar is trading in the mid 108 yen-range on Tuesday.

On Wall Street, stocks closed higher on Monday, partly reflecting optimism about high-level trade talks between the U.S. and China in Beijing. Meanwhile, traders largely shrugged off a report from the Institute for Supply Management showing growth in U.S. service sector activity slowed by more than anticipated in the month of December.

The Dow rose 98.19 points or 0.4 percent to 23,531.35, the Nasdaq surged up 84.61 points or 1.3 percent to 6,823.57 and the S&P 500 climbed 17.75 points or 1.7 percent to 2,549.69.

European stocks climbed off their worst levels but still closed lower on Monday. While the German DAX Index edged down by 0.2 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index both fell by 0.4 percent.

Crude oil prices rose on Monday amid easing worries about global growth and energy demand. WTI crude for February delivery climbed $0.56 or 1.2 percent to $48.52 a barrel on the New York Mercantile Exchange.

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