Japan's Nikkei rebounds after 6-session losing streak

TOKYO: Japan’s Nikkei share average rose on Friday after a 6-session losing streak, although gains were limited by caution ahead of corporate earnings reports and the US midterm elections.

The Nikkei climbed 1.75% to 65,550.68 by the midday break after a near 5% drop in the previous session, but was down 5% so far this week.

The broader Topix rose 1.83% to 4,072.71, but remained on track for a 0.8% weekly fall.

“The shares rebounded as investors bought back stocks after sharp losses in the previous session… there were no other factors for the gains,” said Daisuke Hashizume, senior strategist at Daiwa Securities.

“Market players see little reason to buy shares aggressively ahead of the release of corporate earnings and the US midterm elections next month.”

Markets are watching whether the election outcome will affect US President Donald Trump’s proposals for $5,000 payouts for US adults and higher military spending, said Hashizume.

In Japan, chip-making equipment maker Tokyo Electron rose 2.12%, memory chip maker Kioxia gained 3.34% and technology investor SoftBank Group rose 1.3%.

Chip-testing equipment maker Advantest recouped early losses to edge up 0.64%.

BayCurrent surged 17.25% to become the top percentage gainer on the Nikkei after the consulting firm said it would use excess cash for investments and share buybacks.

Banks supported the Topix, with Mitsubishi UFJ Financial Group and Mizuho Financial Group rising 1.64% and 1.71%, respectively.

Of more than 1,500 stocks trading on the Tokyo Stock Exchange’s prime market, 83% rose, 13% fell and 2% traded flat.