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Tokyo stocks close higher on trade optimism

Tokyo stocks closed higher for a fourth straight session on Friday, extending rallies on Wall Street on hopes of a China-US trade deal.

The benchmark Nikkei 225 index rose 0.26 percent or 61.55 points to end at 23,391.87. Over the week, it jumped 2.37 percent.

The broader Topix index was up 0.27 percent or 4.64 points at 1,702.77, a weekly gain of 2.18 percent.

"The Nikkei index rose as hopes for the removal of tariffs between the US and China expanded," Okasan Online Securities said in a commentary.

China and the United States have agreed a plan to remove tariffs imposed on two-way goods in stages, the commerce ministry said Thursday after the close of the Japanese market, as negotiators try to hammer out a trade deal.

Global investors welcomed the Chinese statements, with the US Dow and S&P 500 finishing at fresh records.

The Dow ended up 0.7 percent, while the S&P 500 gained 0.3 percent and the tech-rich Nasdaq Composite Index advanced 0.3 percent.

The dollar was quoted at 109.25 yen in Asian trade, against 109.29 yen in New York.

In Tokyo trading, banks were among the winners with Mitsubishi UFJ Financial gaining 1.56 percent to 590.5 yen and Sumitomo Mitsui Financial 1.38 percent to 4,015 yen.

Automakers were also higher with Honda rising 1.92 percent to 3,072 yen. Following the closing bell, the company said its net profit plunged 19.0 percent due to negative currency exchange rate and declining sales.

Toyota jumped 2.18 percent to 7,905 yen while Mitsubishi Motors climbed 2.03 percent to 502 yen.