Japan's Nikkei share average rebounded on Tuesday morning after suffering a sharp drop last week, as investors played catch-up after US shares rose on Monday, when markets were closed for a national holiday in Japan.

The Nikkei rose 0.7 per cent to 21,537.46 points by midmorning, after posting a 7.1 per cent weekly drop in the last week hit by a sell-off in Wall Street. The broader Topix gained 0.6 per cent to 1,742.20.

Securities, real estate and textile sectors outperformed, with Nomura Holdings rising 2.4 per cent, Mitsui Fudosan soaring 2.6 per cent and Toray Industries surging 6.6 per cent. Air transport and land transport sectors, on the other hand, underperformed. ANA Holdings dropped 0.9 per cent and East Japan Railway Co shed 0.4 per cent.