Global shares rose on Monday amid growing optimism the United States and China will reach a trade agreement as soon as this month, report agencies.
US President Donald Trump and Chinese President Xi Jinping might seal a formal trade deal around March 27, given progress in talks between the two countries, the Wall Street Journal reported on Sunday.
The two nations have imposed tit-for-tat tariffs on billions of dollars worth of each others' goods, roiling financial markets, disrupting manufacturing supply chains and shrinking US farm exports.
A source briefed on the negotiations told Reuters the two countries appear close to a deal that would roll back US tariffs on at least $200 billion worth of Chinese goods.
Stock markets welcomed the news, with European markets following their Asian counterparts higher.
The pan-European STOXX 600 index was up 0.4 per cent.
MSCI's All Country World Index, which tracks shares in 47 countries, was up 0.1 per cent on the day.
US stocks opened higher Monday in tandem with global markets on signs of progress in U.S.-China trade negotiations.
Tokyo's benchmark Nikkei index gained more than one per cent.
The Nikkei 225 index added 1.02 per cent, or 219.35 points, to close at 21,822.04, while the broader Topix index climbed 0.73 percent, or 11.87 points, at 1,627.59.
In Asia, Chinese shares were the biggest gainers, with the blue-chip index up as much as 3 per cent. The CSI300 index rallied last week after index provider MSCI quadrupled its weighting for mainland shares in its global benchmarks.