Nikkei rises on hopes for progress in trade talks at G20

* Companies with large exposure to China in demand
* Japan Display jumps on report Apple will inject $100 mln

By Ayai Tomisawa
TOKYO, June 27 (Reuters) - Japan's Nikkei rose on Thursday
on hopes for progress in U.S.-China trade talks as investors
cautiously awaited the outcome of the G20 summit.
The Nikkei share average .N225 rose 0.9% to 21,267.60
points by midmorning.
Overall sentiment improved, with cyclical stocks and
companies with large exposure to China in positive territory
ahead of a meeting between U.S. and Chinese leaders at the G20
summit in Osaka this weekend.
U.S. President Donald Trump said on Wednesday that a trade
deal with Chinese President Xi Jinping was possible this weekend
but he is prepared to impose U.S. tariffs on virtually all
remaining Chinese imports if the two countries continue to
disagree. Trump also raised the possibility that he may impose a
lower, 10% duty on a $300 billion list of Chinese imports,
instead of the proposed 25% rate.
Trump is expected to meet with Xi on Saturday for a
conversation that could revive stalled negotiations between the
world's two biggest economies or launch a much deeper, costlier
trade war that would drag down global growth and roil financial
markets.
"The market's main concern is whether the two countries land
on some kind of deal which will determine the direction of U.S.
monetary policy," said Yoshinori Shigemi, a global market
strategist at JPMorgan Asset Management.
Machinery, automakers and tech shares were bought, with
Tokyo Electron 8035.T soaring 4.6%, TDK Corp 6762.T jumping
4%, Daikin Industries 6367.T surging 3.9% and Subaru Corp
7270.T rising 3.6%.
Companies which rely on Chinese demand also gained ground.
Fanuc Corp 6954.T rose 1.6% and Yaskawa Electric 6506.T
jumped 4.5%.
Japan Display Inc 6740.T jumped 20% after the Asahi
newspaper reported that Apple Inc AAPL.O will inject $100
million into the company.
The broader Topix .TOPX gained 1% to 1,548.86.


(Editing by Kim Coghill)