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TOKYO: Japan’s Nikkei share average rose to a three-week high on Thursday, tracking a tech-led rally on Wall Street overnight, as the White House signalled a willingness to de-escalate its trade war with China.

A Financial Times report that US President Donald Trump may exempt car companies from some tariffs lent additional support to auto shares.

The market initially enjoyed the broad support of a retreat in the yen’s value against the dollar, although a rebound on Thursday contributed to Japan’s stock indexes paring gains into the close.

The Nikkei ended the day up 0.5% at 35,039.15, near the session low but held above the psychologically significant 35,000 level. It earlier advanced as much as 1.2% to touch 35,287.95 for the first time since April 2, when Trump stunned world markets with his far more aggressive-than-anticipated “Liberation Day” reciprocal tariffs.

The broader Topix rose 0.3%.

On Wednesday, US Treasury Secretary Scott Bessent said that the current astronomical levies between the United States and China are not sustainable and “a break between the two countries in trade does not suit anyone’s interest,” signalling the White House’s willingness to talk.

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