TOKYO: Japan's Nikkei share average snapped a six-session losing streak on Friday as artificial intelligence-related shares rebounded, although gains were limited by caution ahead of corporate earnings reports and US midterm elections.
The Nikkei rose 1.39 per cent to 65,324.29 after a near five per cent drop in the previous session. The index fell 5.37 per cent for the week.
The broader Topix rose 1.67 per cent to 4,066 but fell 0.95 per cent for the week.
"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 US$5,000 payouts for US adults and higher military spending, said Hashizume.
In Japan, chip-making equipment maker Tokyo Electron rose 2.56 per cent, memory chip maker Kioxia gained 3.84 per cent and technology investor SoftBank Group rose 1.9 per cent.
Chip-testing equipment maker Advantest recouped early losses to end 0.55 per cent higher.
BayCurrent surged 17.25 per cent 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 1.82 per cent and 1.72 per cent, respectively.
Of more than 1,500 stocks trading on the Tokyo Stock Exchange's prime market, 83 per cent rose, 14 per cent fell and two per cent traded flat.
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