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Japane Shares Extend Recovery, Investors Shrug off GDP Data

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TOKYO, May 18 Reuters Japanese shares jumped on Tuesday, as the market showed scant reaction to data that signalled the countrys economy had slumped back into decline, while MUFG and Recruit Holdings gained on solid corporate earnings.

Nikkei share average rose 2.98 to 28,402.64, extending its recovery from a fourmonth low hit last week, while the broader Topix added 1.51 to 1,907.22.

Investors shrugged off the release of gross domestic product GDP data that showed Japans economy shrank more than expected as a slow vaccine rollout and fresh COVID19 infections hit spending, raising concerns the country will lag others emerging from the pandemic.

The market has dropped near its fair value so it has found a bottom for now, said Nobuhiko Kuramochi, senior strategist at Mizuho Securities.

Recruit Holdings, the seventhbiggest Japanese company by market capitalisation, jumped 7.5 after the firm gave a strong outlook for the current financial year.

Mitsubishi UFJ Financial Group rose 2.2 after the countrys top banking group announced a dividend hike and a strongerthanexpected profit estimate for the current year.

Shares of department stores rose sharply after investors bought them back on expectations that local coronavirus infections would ease soon as the government imposed restrictions and a mass vaccination programme.

J.Front Retailing rose 4.6 while Isetan Mitsukoshi gained 4.4.

Insurers were another bright spot as elevated U.S. bond yields are seen helping to…

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