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Japanese Market Notably Higher

The Japanese stock market, which resumed trading after a holiday on Monday, is notably higher on Tuesday following the record closing highs overnight on Wall Street amid growing optimism about a U.S.-China trade deal. The major exporters are rising on a weaker yen.

The benchmark Nikkei 225 Index is adding 318.05 points or 1.39 percent to 23,168.82, after touching a high of 23,215.48 in early trades.

The major exporters are higher as the safe-haven yen weakened. Mitsubishi Electric is gaining almost 2 percent, Panasonic is rising more than 1 percent, Canon is advancing 1 percent and Sony is adding 0.6 percent.

Market heavyweight SoftBank Group is rising more than 2 percent, while Fast Retailing is adding almost 1 percent.

Among auto stocks, Toyota Motor is up 0.3 percent and Honda Motor is adding almost 2 percent. In the tech space, Advantest is gaining almost 4 percent and Tokyo Electron is rising more than 2 percent.

In the oil sector, Japan Petroleum is gaining more than 4 percent and Inpex is higher by more than 3 percent after crude oil prices extended gains overnight.

Among the major gainers, Z Holdings is gaining more than 11 percent, Yamaha Corp. is rising more than 10 percent and Ricoh Co is higher by almost 7 percent.

On the flip side, Mitsui E&S Holdings is falling more than 26 percent, Konica Minolta is losing almost 10 percent and Konami Holdings is lower by almost 7 percent.

In economic news, the Bank of Japan said that the monetary base in Japan was up 3.1 percent on year in October, coming in at 517.100 trillion yen. That's up from the 3.0 percent increase in September.

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

On Wall Street, stocks closed at new record closing highs on Monday as traders remain hopeful about a U.S.-China trade agreement, with Commerce Secretary Wilbur Ross expressing optimism phase one of a trade deal could be signed this month. News on the merger-and-acquisition front also generated some positive sentiment, with shares of Wright Medical Group soaring after the medical device maker agreed to be acquired by larger rival Stryker.

The Dow climbed 114.75 points or 0.4 percent to 27,462.11, the Nasdaq advanced 46.80 points or 0.6 percent to 8,433.20 and the S&P 500 rose 11.36 points or 0.4 percent to 3,078.27.

The major European markets also showed strong moves to the upside on Monday. While the German DAX Index surged up by 1.4 percent, the French CAC 40 Index jumped by 1.1 and the U.K.'s FTSE 100 Index advanced by 0.9 percent.

Crude oil prices saw some further upside on Monday amid renewed optimism about the outlook for global demand. WTI crude for December delivery rose $0.34 or 0.6 percent to $56.54 a barrel.

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