Nikkei up 2 pct as U.S. recession fears ease
(Updates to midafternoon)
TOKYO, March 6 (Reuters) - Japan's Nikkei average rose more than 2 percent in early afternoon trade on Thursday, with exporters such as Canon Inc (7751.T) rising on a stabilising yen and easing concerns about a U.S. recession.
Trading houses such as Mitsubishi Corp (8058.T) extended their gains, buoyed by rising commodities prices.
"We should be seeing a rebound like this with the Nikkei having lost nearly 1,000 points and then moving flat in recent sessions," said Masayoshi Okamoto, head of dealing at Jujiya Securities.
As of 0411 GMT, the benchmark Nikkei average .N225 was up 2.6 percent at 13,303.46 after logging its lowest close since Jan. 23 on Wednesday.
The broader TOPIX index added 2.4 percent to 1,293.59.
But participants said the market may change course later in the day after Nippon Steel Corp (5401.T) gives an update on its earnings outlook at 0430 GMT.
"This should be seen as a macroeconomic indicator. How it will pass on rising raw materials prices will affect a wide range of industries," Jujiya's Okamoto said.
Canon rose 2.9 percent to 4,670 yen and Mitsubishi gained 5.3 percent to 3,400 yen.
Bank shares also climbed, with No.1 Mitsubishi UFJ Financial Group (8306.T) up 1.9 percent at 898 yen.
Resource-related shares such as Sumitomo Metal Mining Co Ltd (5713.T) gained 3.3 percent to 2,220 yen on a jump in metal prices, while record oil prices send Japan's top oil and gas developer Inpex Holdings Inc (1605.T) up 6 percent to 1.24 million yen. (Reporting by Taiga Uranaka)
