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* Nintendo sends out to report that it provides 2 versions of Switch console
* Futures contracts purchased before shares go ex-dividend
By Ayai Tomisawa and Daniel Leussink
TOKYO, March 26 (Reuters) – Japan's Nikkei bounced back on Tuesday after hitting five-week lows, as cyclical stocks tightened on short positions after yesterday's sell-off triggered by fears of a sharp sell-off. a global economic slowdown.
As the end of the fiscal year looks ahead to March 31 for a majority of publicly traded Japanese companies, the market has also been buoyed by investors buying shares before their ex-dividend later in the day. .
The average price of Nikkei shares closed up 2.15% to 21,428.39, after recording its largest decline since Monday, end of December.
Analysts said risk aversion had eased somewhat after a slide slumped on Wall Street, but worries about a recession in the United States persisted.
On Monday, the benchmark 10-year Treasury yields fell to their lowest levels since December 2017, while the yield curve between 3-month and 10-year notes continued to reverse as investors continued to evaluate dovish pivot last week by the US Federal Reserve.
An inverted yield curve is widely perceived as a sign of recession.
"In the short term, a reversal of US yields is likely to continue to worry investors," said Hikaru Sato, Senior Technical Analyst at Daiwa Securities. "But in the longer run, investors are concerned about Japan-specific issues, such as the yen's level, which is trading at a higher level against the dollar compared to last year. "
He said that with the closing of Japanese companies in March, worries about annual results and forecasts for the coming fiscal year should probably keep investors on their guard.
Exporters rebounded. Panasonic Corp gained 4.1%, Yaskawa Electric 2.4% and Advantest Corp 1.9%.
Nintendo Co climbed 4.8% after the Wall Street Journal announced that the company plans to launch two new versions of its Switch gaming console this summer, citing people close to the issue.
Analysts have said that index futures are required by index funds and mutual funds before stocks become ex-dividends.
Renesas Electronics grew 2.9% after the company announced that it would buy up to 10 billion yen ($ 90.8 million) of its own shares.
The broader Topix rose 2.57% to 1,617.94, with all of its 33 subsectors trading in positive territory. (1 $ = 110.05 yen) (Reported by Ayai Tomisawa and Daniel Leussink, edited by Shri Navaratnam and Darren Schuettler)
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