Japanese shares have regained some of their ground after falling more than 7% yesterday in a dramatic trading session.
European markets recorded sharp falls in early trading on Thursday after Japan's Nikkei 225 index shed more than 1,100 points on concerns the US Federal Reserve may scale back its quantitative easing programme.
The Japanese economy grew faster than any other G7 country in the first quarter of the year, reflecting the benefit of Prime Minister Shinzo Abe's expansionary policies.
Japan's main equity market surged to a five-year high on the first day of trading after the country's Golden Week public holiday.
Marcus Brookes, head of multi-manager at Cazenove, is backing Europe over the US despite the region's problems.