Nikkei surges to 4-week highs on hopes for trade talks and U.S. 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 surged to
four-week highs on Wednesday morning on news that the United
States and China will rekindle talks on trade, while ongoing
expectations that the U.S. Federal Reserve will cut rates this
year supported sentiment.
The Nikkei share average .N225 jumped 1.7% to 21,320.80 in
midmorning trade, after rising to a high as 21,352.22 to hit the
highest level since May 22.
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 started a two-day policy meeting on Tuesday that
analysts expect will result in interest rates being left
unchanged, while 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 1.5% to 1,550.98, with all
but one 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 , Taiyo Yuden 6976.T , TDK Corp 6762.T all adding
more than 4%.
Machinery shares gained ground, 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 leapt 8.4% 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 surged 16% after the
Wall Street Journal reported that Apple Inc AAPL.O may
consider helping the company. Reuters has not verify the report.
(Editing by Simon Cameron-Moore)