CORRECTED-Nikkei rebounds from 5-week low as Turkish lira recovers

  • Reuters
  • Stock Market News
CORRECTED-Nikkei rebounds from 5-week low as Turkish lira recovers

(Corrects 3rd paragraph to say the Nikkei fell to 21,851.32 on Monday)

* SoftBank, Fast Retailing contributes hefty points to Nikkei

* Fewer domestic investors during Japan's 'bon' holidays

* Watami dives as it loss widens

By Ayai Tomisawa

TOKYO, Aug 14 (Reuters) - Japan's Nikkei rebounded from a five-week low on Tuesday, as export-driven firms benefited from a pause in the safe-haven yen's appreciation following the Turkish lira's partial recovery. strong yen cuts 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, while index-heavyweight stocks like SoftBank 9984.T and Fast Retailing 9983.T also surged.

The Nikkei share average .N225 gained 1.2 percent to 22,122.46, after falling to as low as 21,851.32 on the previous day, the lowest level since July 11.

"The fact that a sell-off in Japanese stocks has stopped for now is positive, but investors are still wary of unstable emerging market currency moves," said Takuya Takahashi, a strategist at Daiwa Securities.

"The Nikkei tends to be volatile as it has many cyclical stocks which get affected by the dollar-yen moves."

The dollar was up 0.1 percent at 110.79, compared to a 1 1/2-month low of 110.10 touched on Monday.

With many domestic investors away for Japan's 'bon' holidays this week, activity will likely stay thin, analysts said.

They added that Japan market's trade will likely be swayed by such short-term investors as foreign hedge funds, who are seen buying back heavily-battered stocks in the past two days.

Tokyo Electron 8035.T rose 1.8 percent, TDK Corp 6762.T soared 2.4 percent and Advantest Corp 6857.T surged 2.4 percent.

SoftBank Group 9984.T soared 3.1 percent and Fast Retailing 9983.T surged 2.4 percent, adding a hefty 76 points to the Nikkei benchmark index.

Restaurant operator Watami 7522.T nose-dived 9.2 percent after the company posted an operating loss of 223 million yen for the April-June period, compared to an operating loss of 112 million yen in the previous year.

The broader Topix .TOPX rose 0.8 percent to 1,697.35.

(Editing by Simon Cameron-Moore)

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