* Short-covering by hedge funds lifts market - analysts
* Volume thin as many domestic investors on holiday
* Watami dives after reporting a widening loss
By Ayai Tomisawa
TOKYO, Aug 14 (Reuters) - Japan's Nikkei on Tuesday rebounded from a five-week low, posting its biggest one-day gain since March as export-driven firms benefited from a pause in the safe-haven yen's strengthening while the battered Turkish lira firmed.
The Nikkei share average .N225 surged 2.3 percent to 22,356.08, the biggest percentage gain since March 27. On Monday, it touched 21,851.32, the lowest level since July 11.
The broader Topix .TOPX rose 1.6 percent to 1,710.95, with all of its 33 subsectors in positive territory.
But with many domestic investors away for religious holidays in Japan this week, activity was thin. Only 1.2 billion shares changed hands on the main board.
A strong yen reduces Japanese manufacturers' profits made abroad when repatriated, and the respite on the currency front allowed recent losers such as electric machinery shares to rise on short-covering.
"Today's activity was mostly short-covering by hedge funds," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley (NYSE: MS ) Securities.
"The Japanese market posted a sharp decline the day before, but people woke up to find out that U.S. and European stock markets did not see much selling compared to Japan."
The dollar was up 0.2 percent at 110.92 yen.
Restaurant operator Watami Co 7522.T nose-dived 10 percent after it posted an operating loss of 223 million yen for the April-June period, compared to an operating loss of 112 million yen a year earlier.
(Editing by Richard Borsuk)
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.