Japanese shares rise sharply

Asian stocks advanced on Friday after China said it's evaluating the possibility of trade talks with the United States, raising hopes of trade war de-escalation.

Regional trading volumes were muted as mainland Chinese markets remained closed for Labour Day.

The dollar dipped ahead of U.S. payrolls data while gold recovered from a two-week low but was set for a weekly drop. Oil ticked higher after a fresh threat of U.S. sanctions against Iranian flows.

Japanese markets rose sharply, with exporters rising on a weaker yen after the Bank of Japan trimmed its growth and inflation forecasts.

Sentiment was also boosted by positive comments from Japan's chief trade negotiator. The Nikkei average climbed 1.04 percent to 36,830.69 while the broader Topix index settled 0.31 percent higher at 2,687.78.

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