TOKYO, Nov 2 (Reuters) - Japan’s Nikkei share average jumped on Monday, weathering the impact from downbeat U.S. stocks late last week, as signs of a recovery in earnings at home and a relatively contained domestic COVID-19 situation lifted sentiment. The Nikkei rose 1.42% to 23,303.42, erasing all of its Friday losses that took it to a two-month closing low. The broader Topix gained even more, rising 1.78% to 1,607.39 from Friday’s near-three-month trough. “Looking at Japanese earnings, you can see cyclicals are recovering. Some companies are raising their annual guidance more than expected,” said Fumio Matsumoto, chief strategist at Okasan Securities. Keyence, the fourth-largest company on the Tokyo bourse by market capitalisation, rose 1.7% after the developer of sensors and other electronic goods announced upbeat quarterly earnings. Makita Corp jumped 8.3% following its brisk earnings, while M3, which has more than doubled so far this year, added 1.4%. But, Murata Manufacturing dipped 0.9%, failing to maintain earlier gains on profit-taking. The company had revised up its annual estimates more than expected, citing stronger recovery in smart phone and automobile-related demand. Cheaper, value shares attracted investors’ bargain-hunting the most, with limited virus cases in Japan giving some advantage. Daily new infections remain less than one thousand compared with over ten thousands in most other G7 countries. Japan Tobacco rose 6.1% after its earnings. The electricity and gas companies’ index was the top performer, with a gain of 3.1%, followed by real estate and steelmakers, both up 2.9% each. Toyota rose 2.4% and KDDI gained 5.0% after they said the automaker would invest 52.2 billion yen ($500 million) in the mobile carrier to deepen their partnership in the age of the “connected car”. The Mothers start-up index fell 0.7% to a 1-1/2-month low, as investors took profits from their rally this year. Similarly some of stay-home winner shares came under pressure, with Z Holdings falling 10% after its earnings. (Reporting by Hideyuki Sano; editing by Uttaresh.V)