Nikkei 225 climbs towards 22,000 as markets go risk-on

• Market sentiment is going risk-on to close the Asia session.
• China delivered a restrained response to continued tariff threats, and traders are rushing for the buy button.

The Nikkei climbed in the Asia session, hitting 21,960.00 before settling back to 21,800.00.

Asia markets rallied when China's Xi Jinping delivered measured comments on trade and tariffs, expressing a willingness to open China's economy going forward. A lack of combative words from Xi regarding the ongoing US-China tariff spat delivered a boost to market sentiment for Tuesday's action.

China President Xi: Should push for free trade

The rally was lead in the Nikkei by transportation and automotive stocks, notably Toyota and Honda, but despite the positive market reaction, Chinese state-owned media outlets were quick to note that Jinping's words do not mean that China has any intention of giving in to Trump's demands, and market participants should remember that there have been no negotiations scheduled or planned meetings between the US or China to get the conversation rolling.

Nikkei Levels to watch

With the Nikkei rallying into last week's highs, the challenge for bulls will be to push the index past resistance at March's swing high of 22,100.00, with a further challenge at late February's swing high of 22,500.00, but a bearish correction will run into support at last week's consecutive swing lows at 21,330.00 and 21,060.00.