Japanese shares closed higher on Thursday as investors bought back equities after a sharp drop in the previous session, with travel-related stocks leading the recovery on hopes of a rebound in tourism.

The Nikkei share average edged higher 0.21% to 27,875.91, recovering from its worst session in three months. The broader Topix inched up 0.15% to 1,950.43.

“It is a rebound from previous session. The market fell too much yesterday,” said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute. “But the rebound is small because overnight gains in U.S. equities were limited.”

Wall Street ended a directionless session higher on Wednesday as an on-target inflation report largely stanched the flow of Tuesday’s sell-off and investors pressed the “pause” button.

In Japan, Uniqlo clothing store owner Fast Retailing rose 0.73% and provided the biggest boost the Nikkei, while chip-making equipment maker Tokyo Electron gained 1.14%.

SoftBank Group rose 0.61% after a report that the technology inventor was considering launching a third Vision Fund, likely using its own capital.

Airline and railway stocks rose 1.77% and 1.08%, respectively, after a report said Japan was expected to waive visa requirements for certain tourists and remove a limit on daily arrivals in October as it aimed to benefit from a rebound in global tourism.

Property developers, many of which own and operate hotels, gained 1.49%.

Publishing firm Kadokawa tumbled 8.72% after its chairman was arrested by Tokyo prosecutors on suspicion of bribery.

Reuters