Japan’s Nikkei recovers from sharp losses, stocks with good prospects shine – Markets

TOKYO: The Nikkei average of Japanese shares rose on Tuesday, recovering from a sharp decline on Friday – the last trading session – led by stocks that reported strong prospects.

By midday, the Nikkei was up 1.11% at 38,474.66 after opening up 0.58%.

That followed a 2.63% fall on Friday, the biggest daily decline in a month.

Markets were closed on Monday due to a public holiday.

Topix shares rose 0.73% to 2,663.58.

Seiichi Suzuki, chief equity analyst at Tokai Research Laboratory, said investors clearly showed more appetite for gains after the open, pushing the early rally further.

“But this momentum will not last long as investors remain cautious until the results of the US presidential election are confirmed.

Nikkei volatility remains high,” Suzuki said.

The Nikkei volatility index rose 20.55% to 31.39.

The Tokyo Stock Exchange (TSE) is extending trading hours by 30 minutes to 15:30 JST (06:30 GMT) on Tuesday to try to increase trading volume.

Shares of heavyweight TDK rose 7% after the electronic components maker on Friday raised its full-year operating profit forecast to 220 billion yen ($1.45 billion), up 27% from a year earlier.

Japanese stocks rise as yen falls

Shares of Nomura Holdings jumped 8% after the brokerage said Friday it more than doubled its quarterly profit to its highest level in four years.

The brokerage sector rose 4.49% to top the 33 sector sub-indices on the Tokyo Stock Exchange.

Sanrio shares rose 14% after the Hello Kitty brand owner raised its full-year net profit forecast.