The Nikkei index rose by 2.8% after Donald Trump's announcement of an extended trade truce with China, sparking optimism in the market.

The Nikkei index of the Tokyo Stock Exchange rose more than 1,100 points to 42,983.34 points after Donald Trump announced the extension of the trade truce with China for another 90 days. Analysts at IwaiCosmo Securities pointed out that easing trade tensions and expectations of a US interest rate cut boosted investor optimism. Companies such as SoftBank Group, Advantest and Toyota have benefited from the stock market rally.