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The benchmark Nikkei, which on Thursday plunged 7,3 percent, finished 0,89 percent, or 128,47 points, higher at 14 612,45, while the broader Topix index of all first-section shares rose 0,48 percent, or 5,74 points, to 1 194,08.

The headline index swung wildly in heavy trading as it surged at the open only to drop more than three percent in the afternoon before ending the day back in positive territory. Toshikazu Horiuchi, a broker with IwaiCosmo Securities, said “extremely nervous” trading saw investors locking in profits with others searching out bargains after Thursday’s precipitous plunge.

“Players rushed to profit-taking after a moderate gain in the morning because they wanted to lock in their gains ahead of the weekend,” Horiuchi said.

Big trades by hedge funds also helped account for the volatility, dealers said, a day after panicky investors dumped their shares, sending the Nikkei tumbling on weak Chinese data after months of sharp climbs.

Earlier on Friday, Kenji Shiomura, strategist at Daiwa Securities, described Thursday’s eye-watering drop as a temporary correction to the recent fast-paced advances with investors taking a cue from weak Chinese data and other negative news.

“There has not been any grave event that could change corporate earnings outlooks and what happened yesterday should be a correction to the recent excessive rises,” he said. — AFP.