The Nikkei 225 average finished slightly higher in thin trading Monday, as participation by foreign investors was limited ahead of Veterans Day in the U.S.
The Nikkei rose 19.63 points, or 0.09 percent, to end at 22,269.88. On Friday, the key market gauge lost 236.67 points.
But the Topix, which covers all first-section issues on the Tokyo Stock Exchange, ended 1.03 points, or 0.06 percent, lower at 1,671.95, after shedding 8.27 points the previous trading day.
The market took a dive at the outset of trading, after U.S. shares finished last week with losses on rekindled concerns over the adverse economic effects of the trade dispute between the United States and China.
Wall Street was pressured, among others, by China’s weakening manufacturing activities as shown by slowed growth in the producer price index for the fourth consecutive month in October.
After the initial selling subsided, however, both the Nikkei and the Topix recouped their losses, led by buying in stock index futures, brokers said. In the afternoon, the market came almost to a standstill.
Trading was thin due to a lack of incentives that were powerful enough to move the entire market. Only shares of some firms that released their earnings recently attracted transactions, an official of a bank-affiliated securities firm said.
Non-Japanese players, particularly U.S. investors, largely took to the sidelines ahead of the holiday Monday, when the currency and bond markets will be closed, but stocks can be traded.
For the time being, the Tokyo market will be limited to selective trading on announcements of earnings results as no major events are scheduled to come up this week, a brokerage firm official said.
Falling issues outnumbered rising ones 1,142 to 887 in the first section, while 83 issues were unchanged.
Volume decreased to 1.231 billion shares, from 1.477 billion Friday.
Low crude oil prices hurt oil names, including JXTG, Cosmo Energy and Showa Shell.
Mitsui Kinzoku plunged 18.00 percent due to its profit warning for the business year through next March.
Other major losers included technology firms Sony and Murata Manufacturing.
Meanwhile, Mitsui Fudosan gained 3.46 percent after the real estate company announced a rosier consolidated earnings forecast for the same business year.
Also higher were clothing retailer Fast Retailing and mobile phone carrier KDDI.