Tokyo's Nikkei index jumps to near eight-month high

Tokyo's benchmark Nikkei index surged to the highest level in nearly eight months on Wednesday, with investor sentiment buoyed by gains on Wall Street and a cheaper yen.

The Nikkei 225 index gained 1.08% to 23 672.52, rising for the fourth straight session. The broader Topix was up 1.46% at 1 785.66.

"Sentiment remained strong as investors welcomed rises in US stocks and the yen's drop," said Hikaru Sato, senior technical analyst at Daiwa Securities.

"But they will continue paying attention to trade negotiations," Sato told AFP.

Prices barely moved after the Bank of Japan kept its accommodative policy in place after it wrapped up a two-day policy meeting.

Global stock markets took the latest escalation in the trade war between the United States and China in their stride on Tuesday.

China announced tariffs on US goods worth $60bn in retaliation to President Donald Trump's decision to slap duties on $200bn in Chinese products next week.

The dollar was changing hands at ¥112.32, hardly changed from ¥112.33 in New York on Tuesday afternoon but up from the ¥111 levels seen for most of Tuesday in Tokyo.

The weaker yen lifted Japanese exporters as Honda jumped 3.01% to ¥3 383 with Toyota up 0.84% at ¥7 019.

Industrial robot maker Fanuc rose 1.81% to ¥22 170.