Japan's Nikkei share average rose on Thursday, snapping a five-day skid, as a rally in domestic bonds and de-escalating tensions between the United States and Europe supported demand for risk assets.
The Nikkei rebounded 1.7% to close at 53,688.89, halting the longest losing streak in a year. The broader Topix climbed 0.7% to 3,616.38.
The Japanese stock market has been volatile this month, jumping last week on expectations of expanded stimulus under Prime Minister Sanae Takaichi. It pulled back this week on fiscal concerns after she pledged to suspend sales taxes on food for two years.
Takaichi is set to dissolve parliament on Friday to trigger a snap election.
Super-long government bonds tanked this week, sending their yields to record highs.
"High volatility in Japanese government bond (JGB) yields this week scared investors in equities," said Takamasa Ikeda, a senior portfolio manager at GCI Asset Management. "The market took it as a sell-off of Japan."
The 30-year JGB yield (JP30YTN=JBTC) extended declines for a second session on Thursday following Tuesday's record high of 3.880%. Yields move inversely to bond prices.
On Thursday, the Japanese stock market was also underpinned by Wall Street's gains overnight, following news that a framework for an agreement on Greenland had been reached and the possibility of new U.S. tariffs on European allies had been averted.
Among individual stocks, chip-related Advantest and Tokyo Electron rose more than 3% each. SoftBank Group jumped 11.6%.
Disco surged 17% after the maker of precision processing equipment projected a 2% increase in annual net profit.
More Japanese companies will release their earnings for the October-December quarter starting next week, providing cues for the stock market.

Sumber : Reuters