Global Market: Japan's Nikkei rebounds after six-session losing streak; weekly loss nears 5%

Japanese stocks recover from a sharp selloff as investors remain cautious ahead of earnings and political developments.

The Nikkei rose 1.75% to 65,550.68 by the midday break, recovering some ground after plunging nearly 5% in the previous session. Despite the rebound, the index remained down about 5% for the week.

The broader Topix gained 1.83% to 4,072.71, but was still on track for a weekly decline of 0.8%.

The recovery was largely driven by bargain hunting following the previous session's sharp selloff, with investors reluctant to make aggressive bets ahead of key corporate earnings and political developments in the United States.

Investors are also assessing whether the outcome of the US midterm elections could influence President Donald Trump's proposals, including $5,000 payments to American adults and increased military spending.

Among individual stocks, chipmaking equipment manufacturer Tokyo Electron rose 2.12%, while memory chipmaker Kioxia advanced 3.34%. Technology investment company SoftBank Group gained 1.3%.

Advantest, a manufacturer of chip-testing equipment, recovered from early losses to trade 0.64% higher.

Consulting firm BayCurrent was the Nikkei's top percentage gainer, surging 17.25% after announcing plans to deploy excess cash towards investments and share buybacks.

Banking stocks also supported the broader market. Mitsubishi UFJ Financial Group climbed 1.64%, while Mizuho Financial Group advanced 1.71%, Reuters reported.

Market breadth remained positive on the Tokyo Stock Exchange's Prime Market. Of more than 1,500 stocks traded, 83% advanced, 13% declined, and 2% were unchanged.

Friday's rebound offered some relief after a steep selloff, but the Nikkei's weekly decline highlighted lingering investor caution as markets awaited corporate earnings and developments surrounding US economic and political policy.