Tokyo stocks rebounded Thursday as investors scooped up battered shares after the Nikkei index plunged nearly 3 percent the previous day to its lowest level in nearly five months.

The 225-issue Nikkei Stock Average ended up 305.70 points, or 1.11 percent, from Wednesday at 27,772.93. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 18.81 points, or 0.98 percent, higher at 1,938.53.

Gainers were led by precision instrument, service and food issues.

The U.S. dollar trended bearish in the morning but rose to the mid-114 yen range after the Nikkei extended gains in the afternoon.

Tokyo stocks moved between positive and negative territory in the morning, a day after the key stock average fell sharply on fears over surging coronavirus infections in Japan.

Brokers said a rise in some Asian markets and U.S. stock futures lifted investor sentiment in the afternoon, while large cap issues, including Sony Group and Toyota Motor, were popular following huge losses on Wednesday.

"In the morning, market participants were unsure of when to buy on dips. But in the afternoon, external factors like advances in U.S. stock futures and a weakening yen improved sentiment," said Shingo Ide, chief equity strategist at the NLI Research Institute.

Meanwhile, Ide said the market did not respond too negatively to the Japanese government's decision Wednesday to expand a coronavirus quasi-state of emergency for Tokyo and some other areas.

"Compared to the previous quasi-emergency last year, the intention of the measure is not focused too much on stopping business activities," he said.

Japan reported over 41,400 cases of infections on Wednesday, topping the 40,000 mark for the first time and setting a new nationwide record for the second straight day.

On the First Section, advancing issues outnumbered decliners 1,559 to 539, while 86 ended unchanged.

Sony Group jumped 725 yen, or 5.8 percent, to 13,135 yen after plunging 12.8 percent the previous day. Toyota Motor advanced 39.5 yen, or 1.7 percent, to 2,342.5 yen, partly recovering from its 5.0 percent loss on Wednesday.

Nikkei heavyweight Fast Retailing, operator of Uniqlo casual clothing chain, moved up 1,150 yen, or 1.7 percent, to 67,640 yen.

Marine transportation issues led decliners on fears about a slowdown in the world economy and reduced shipments to the United States as the U.S. Federal Reserve's faster monetary tightening looms large, brokers said.

Kawasaki Kisen declined 460 yen, or 6.5 percent, to 6,610 yen, while Mitsui O.S.K. Lines fell 460 yen, or 5.3 percent, to 8,280 yen. Nippon Yusen dropped 190 yen, or 2.2 percent, to 8,550 yen.

==Kyodo

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