TOKYO: Japan’s Nikkei share average ended higher on Tuesday, rebounding from a sharp decline on Friday, led by stocks that reported robust outlooks.
The Nikkei rose 1.11% to close trade at 38,474.90 points, after opening 0.58% higher.
The index had declined 2.63% on Friday in its biggest daily decline in a month. Markets were closed on Monday for a public holiday.
The broader Topix was up 0.76% to 2,664.26.
Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory, said investors clearly had more appetite for the upside following the opening, which pushed the early rally further.
“But the momentum will not last long as investors are cautious until they confirm the results of the US presidential election. The Nikkei’s volatility is still high,” said Suzuki.
The Nikkei volatility index rose 4.49 points to 30.52, compared to its 75-day average of 27.7.
The Tokyo Stock Exchange (TSE) increased its trading hours by 30 minutes to 1530 JST (0630 GMT) on Tuesday to try to boost trading volumes.
Strategists, however, said the extended trading is unlikely to help boost volumes in the long term.
Electronic components maker TDK surged 6% after the raised its annual operating profit forecast on Friday to 220 billion yen ($1.45 billion), 27% higher than a year earlier.
Meanwhile, Nomura Holdings jumped 10.61% after the brokerage reported on Friday that it had more than doubled its quarterly profit to the highest level in four years.
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