Nikkei rebounds in choppy trade, risk appetite remains weak
By Joshua Hunt
TOKYO Jan 15 (Reuters) - Japanese stocks rose in choppy trade on Friday morning after taking a cue from Wall Street, where a rally in battered energy shares led a rebound overnight.
The Nikkei share average rose 0.7 percent to end the morning session at 17,367.22, putting it on track to lose 1.9 percent for the week.
The benchmark index rose as much as 2.1 percent in early trading but gave up most of these gains after consistent selling followed the opening of China's trading day.
"Extreme volatility has been the order of the week and even an encouraging recovery in U.S. stocks overnight hasn't been met with much conviction, which reflects how investor sentiment seems to have turned," said Stefan Worrall, director of Japan equity sales at Credit Suisse.
"Last year we saw more willingness to buy on dips and it's a key change that the market seems to view rallies with suspicion so far this year. The question is whether that suspicion runs shallow or deep."
Kawasaki Heavy Industries bucked the trend, plunging 5.3 percent after the company said it will book a 22.1 billion yen ($187.37 million) impairment loss in its Brazillian shipbuilding business for the April-December period.
Department store operator Matsuya Co tumbled 9 percent after cutting its profit outlook for the fiscal year ending February.
The broader Topix rose 0.8 percent to end the morning session at 1,417.03 with all but four of its 33 subindexes in positive territory. The index is on course to fall 2.1 percent for the week.
The JPX-Nikkei Index 400 gained 0.8 percent to 12,761.87. ($1 = 117.9500 yen) (Reporting by Joshua Hunt; Editing by Simon Cameron-Moore)
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