Tokyo stocks opened higher on Monday on hopes the United States and China will avoid an escalation in trade frictions, and with a cheaper yen also supporting the market.
The benchmark Nikkei 225 index added 0.93% points to 21 804.46 in early trade, while the broader Topix index was up 0.83% at 1 629.10.
Washington and Beijing are close to reaching a major trade deal that would see both sides lower some of the tariffs imposed during an often-bitter trade war, a report said on Sunday.
Negotiators for the two sides have made substantial progress and a final accord is close to being hammered out, according to the Wall Street Journal, which quoted anonymous sources on both sides.
"The news should be a positive for risk sentiment at the start of the new week," Rodrigo Catril, strategist at National Australia Bank, said in a note.
After months of sparring on trade, the US and China agreed in December to a 90-day truce to work out their differences.
It was scheduled to end on Friday, but US President Donald Trump eventually lifted the ultimatum to increase tariffs, satisfied by the progress made in several rounds of talks in Beijing and Washington.
"Looking ahead, investors will be closely watching comments by US and Chinese senior officials over trade," including at the National People's Congress in Beijing starting this week, where ministers and senior central bankers will speak, Tsuyoshi Nomaguchi, strategist at Daiwa Securities, said in a commentary.
The dollar fetched ¥111.94 in early Asian trade, against ¥111.92 in New York and ¥111.74 in Tokyo on Friday.
In Tokyo, China-linked shares were higher, with electronic parts maker Rohm rallying 2.54% to ¥7 260 and industrial robot maker Fanuc trading up 2.31% at ¥19 230.
Sony was up 0.84% at ¥5 360 and Panasonic rose 0.24% to ¥1 020.5.