TOKYO: Japan’s Nikkei share average rose on Tuesday, rebounding from a sharp decline on Friday – its most recent trading session – led by stocks that reported robust outlooks.

The Nikkei rose 1.11% to 38,474.66 by the midday break, after opening 0.58% higher.

That followed a 2.63% drop on Friday in its biggest daily decline in a month.

Markets were closed on Monday for a public holiday.

The broader Topix was up 0.73% to 2,663.58.

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 20.55% to 31.39.

The Tokyo Stock Exchange (TSE) is increasing its trading hours by 30 minutes to 1530 JST (0630 GMT) on Tuesday to try to boost trading volume.

Heavyweight TDK surged 7% after the electronic components maker raised its annual operating profit forecast on Friday to 220 billion yen ($1.45 billion), 27% higher than a year earlier.

Japan stocks rally as yen tumbles

Nomura Holdings jumped 8% after the brokerage reported on Friday that it had more than doubled its quarterly profit to the highest level in four years.

The brokerage sector rose 4.49% to become the top performer among the Tokyo Stock Exchange’s 33 industry sub-indexes.

Sanrio surged 14% after the owner of the ‘Hello Kitty’ brand raised its annual net profit forecast.