TOKYO - Japan's Nikkei reversed its course to settle higher on Friday, as investors snapped up shares on hopes for solid corporate earnings, despite a sell-off in broader Asian markets amid concerns over China's reinforcement of its zero-COVID policy.

The Nikkei share average closed 0.69% higher at 27,003.56, after trading mostly in negative territory earlier in the session. The broader Topix climbed 0.93% to 1,915.91.

"The market was stronger than I had expected," said Jun Morita, general manager of the research department at Chibagin Asset Management. "Japanese corporate outlook released before the Golden Week holiday was better than expected and investors took this as a positive factor."

Japanese markets opened lower after a three-day holiday, tracking U.S. stocks which ended sharply lower overnight in a broad sell-off, as sentiment cratered in the face of concerns that the Federal Reserve's interest rate hike the previous day would not be enough to tame surging inflation.

Investors bought shares that are resilient amid inflation, such as commodity-related and banking shares. Oil explorers jumped 4.56% as crude prices rose, while banks added 2.52% amid a rise in U.S. Treasury yields.

Toyota Motor provided the biggest boost to the Topix, rising 2.15%. Trading firm Mitsui & Co jumped 6.08% and banking group Mitsubishi UFJ Financial Group climbed 3.08%.

Tokyo Electric Power Holdings surged 16.23% and was the top gainer on the Nikkei, after Prime Minister Fumio Kishida said in London that Japan would utilise nuclear reactors to reduce dependence on Russian energy.

Investors were waiting for a closely watched monthly employment report from the U.S. Labor Department that would provide clues to the labour market's strength.

(Reporting by Junko Fujita; editing by Uttaresh.V and Subhranshu Sahu)