TOKYO, Sept 5 (Reuters) - Japanese shares advanced to a one month-high on Thursday as investors cheered some easing tension in Hong Kong, British lawmakers' vote against a "no-deal" Brexit and signs of progress in U.S.-China trade talks.
The benchmark Nikkei average gained as much as 2.5% to 21,157.15 in the morning session, its highest level since Aug. 2, while the broader Topix rose as much as 2.3% to 1,540.59, its highest in a month.
Risk appetites were improved by news that Hong Kong leader Carrie Lam withdrew an extradition bill that had triggered months of often violent protests in the Asian financial hub and that British lawmakers voted to prevent a no-deal Brexit on Oct. 31.
The market extended early gains after Beijing said China and the United States agreed to hold trade talks in Washington in early October.
All of the Tokyo Stock Exchange's 33 subsectors were in positive territory as the market attracted hefty purchases across the board.
Cyclical sectors were particularly in demand, with sea transport, electrical machinery and precision machinery the top three performing subindexes on the Topix, up between 3.2 and 3.7%.
Other notable movers include TSE REIT index, edging up 0.3% higher to hit a fresh 12-year high since 2007.
M3 Inc soared 11.4% and Tokyo Dome Corp dived 7.0% after index provider Nikkei announced it will drop the baseball stadium operator from the Nikkei 225 share average and replace it with the medical-related service provider, from Oct 1.
Candidates which did not make the list were down, due to disappointment. Kakaku.com, Zozo and Nintendo shed 5.5%, 1.7% and 1.2%, respectively.
Nissan Motor Co gained 2.6% despite media reports quoting its chief executive as admitting to improperly receiving stock-related compensation, in the latest case of financial misconduct among executives at Japan's second-largest automaker.
Reporting by Tomo Uetake; Editing by Richard Borsuk