TOKYO (Dow Jones)--Tokyo stocks rebounded Thursday from the previous session's sell-off as investors bought Toyota, Sony and other blue chip firms with solid profit outlooks in cautious trading ahead of Japanese economic data Friday.
Gains on Wall Street after Federal Reserve Chairman Ben Bernanke's testimony to Congress and a decline in oil prices gave investors added reason to scoop up shares, traders said.
"The performance of blue chips, including Toyota, was shining today," said Masayoshi Okamoto at Jujiya Securities.
The Nikkei 225 Stock Average rose 110.84 points, or 0.7%, to 16043.67. The index recouped about half of a 252.04-point drop Wednesday.
Toyota rose 1.6% to Y6,320 and Sony was up 2.7% at Y5,660. Canon gained 2.0% to Y7,210.
Caution grew toward the market close, with many investors holding their fire ahead of gross domestic product data due Friday morning. October-December real GDP is expected to have grown 1.2% on quarter, or 5.0% in annualized terms, according to a survey of economists by Dow Jones and the Nikkei.