The Nikkei index closed up 0.6 percent at 35,025, while the broader Topix index rose 0.9 percent to 2,483.3.
U.S. stocks closed sharply higher on Thursday after a report on jobless claims suggested that fears of a hard landing for the economy may have been overblown and that gradual improvements in the labor market were still in place.
The Nikkei index was able to recover most of its losses after plunging more than 12.4 percent amid a frenzied selling wave on Monday due to fears of recession and the liquidation of yen-funded investments, ending the week with a relatively limited decline of 2.5 percent.
But today saw volatile trading, with the index briefly falling 1 percent before regaining its balance as turmoil continued after the extreme volatility that rocked the Japanese stock market earlier this week.
Analysts say the volatility is likely to continue into next week as traders look for data to support expectations of a soft landing for the world’s largest economy.
The Bank of Japan’s decision last week to raise interest rates also raised alarm bells about the pace of the central bank’s tightening, prompting the bank’s deputy governor to make some damage-limitation efforts on Wednesday.
For individual stocks, corporate earnings drove some of the biggest moves.
Electronics component maker Fujikura jumped 19.7 percent to post the biggest gain on the Nikkei, while staffing firm Recruit Holdings rose 6.8 percent.
Shares of cosmetics maker Shiseido Co. plunged 12.1 percent after reporting mid-year earnings that were hurt by restructuring costs and slumping demand in China.
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