Nikkei ends near 6-week highs on hopes for trade talks, Fed rate cut

* Nomura Holdings jumps on share buyback announcement
* Japan Display soars on report Apple may help

By Ayai Tomisawa
TOKYO, June 19 (Reuters) - Japan's Nikkei rallied hard to
end near six-week highs on Wednesday on news that the United
States and China will revive talks on trade, while expectations
the U.S. Federal Reserve will cut rates this year supported
sentiment.
The Nikkei share average .N225 jumped 1.7% to close at
21,333.87, the highest closing level since May 10.
U.S. President Donald Trump said he would meet with Chinese
President Xi Jinping at the G20 summit later this month, and
said talks between the two countries would restart after a
recent lull. "Investors are taking heart from the new development. The
two countries will at least be talking (after a lull), so the
market thinks there is little chance that talks get broken off
soon after they meet," Shoji Hirakawa, chief global strategist
at Tokai Tokyo Research Institute.
Hirakawa also said support for risk appetite came from hopes
and expectations of monetary easing in both the United States
and Europe.
The Fed concludes its two-day policy meeting later
Wednesday, with analysts expecting rates to be left unchanged
but also setting the stage for possible easing later this year.
On Tuesday, European Central Bank President Mario Draghi
hinted at more stimulus if regional inflation fails to pick up
toward its target, sending global yields lower.
The broader Topix .TOPX gained 1.7% to 1,555.27, with all
of its subsectors in positive territory.
Companies with large exposure in China such as tech shares
and electric component makers outperformed, with Advantest Corp
6857.T surging 5.4%, Taiyo Yuden 6976.T up 5.6% and TDK Corp
6762.T up 4.6%.
Machinery shares joined the rally, with Fanuc Corp 6954.T
rising 2.3%, Yaskawa Electric Corp 6506.T adding 2.8% and
Keyence Corp 6861.T jumping 4%.
Nomura Holdings 8604.T soared 10.5% after it said it would
buy back up to 8.6% or its shares outstanding, or up to 150
billion yen.
Elsewhere, Japan Display Inc 6740.T rocketed 10.9% after
the Wall Street Journal reported that Apple Inc AAPL.O may
consider helping the company. Reuters has not verified the
report. (Editing by Simon Cameron-Moore & Shri Navaratnam)