Nikkei jumps to 2-month high on U.S.-China trade optimism

* All subsectors in positive territory
* Chip-related stocks, electric component makers surge
* JSR falls on Japan high-tech export restrictions to South
Korea

By Ayai Tomisawa
TOKYO, July 1 (Reuters) - Japan's Nikkei jumped over 2% to
near two-month highs on Monday as risk sentiment improved after
the United States and China agreed to restart trade talks, while
tech shares also got a lift on an easing of restrictions on
Huawei.
The Nikkei share average .N225 ended up 2.1% at 21,729.97
points, its best closing level since May 7.
China agreed to make unspecified new purchases of U.S. farm
products and return to the negotiating table, after a weekend
meeting between U.S. President Donald Trump and Chinese
President Xi Jinping.
But no deadline was set for progress on a deal, and the
world's two largest economies remain at odds over significant
parts of an agreement. Trump said new tariffs were on hold and offered an olive
branch to Xi on Huawei Technologies Co HWT.UL , the world's
biggest telecommunications network gear maker. Washington had
put Huawei on an export blacklist citing national security
issues, barring U.S. suppliers from selling to the company
without special approval.
Trump said the U.S. Commerce Department would study in the
next few days whether to take Huawei off the list of firms
banned from buying components and technology from U.S. companies
without government approval.
"These are all positive news to the market," said Shogo
Maekawa, global market strategist at JPMorgan Asset Management.
"The part about Huawei was particularly a positive surprise to
the market."
Chip-related shares and electric components maker rallied.
Tokyo Electron 8035.T surged 4.8%, Advantest 6857.T jumped
6.2%, TDK Corp 6762.T soared 7%, Sumco Corp 3436.T added
3.2% and Minebea Mitsumi 6479.T rose 3.6%.
Other companies which have high exposure to China also
gained ground. Murata Manufacturing 6981.T jumped 5%, Yaskawa
Electric Corp 6506.T surged 5.3% and Keyence Corp 6861.T
added 3.6%.
On the other hand, resin products maker JSR Corp 4185.T
dropped 2% after the industry ministry said that Japan would
tighten restrictions on exports of high-tech materials used in
smartphone displays and chips to South Korea in response to a
South Korean ruling on war-time forced labour. The broader Topix .TOPX surged 2.2% to 1,584.85, with all
of its 33 subsectors in positive territory.


(Editing by Jacqueline Wong & Kim Coghill)