(Corrects paragraph 3 to ...five-month low...not five-year low)
* Yen rises vs dollar on Japan repatriation
* Yen hits a near 5-mth low vs the kiwi
By Satomi Noguchi
TOKYO, March 27 (Reuters) - The yen rose against the dollar on Friday, recovering some losses made the previous day, as a major Japanese investor repatriated funds from overseas ahead of the business-year end this month.
Traders said price actions in Asian hours are likely to stay choppy as more flows are expected to come through the market before March 31, when many Japanese companies and investors close their books.
The yen had fallen against major currencies the previous day and hit a near five-month low versus the New Zealand dollar earlier in Asian trade, as investors grew more comfortable about buying risky assets including higher-yielding currencies.
The New Zealand dollar has been propelled broadly higher this week after government yields rose in a sign that investors were reining in expectations for lower rates.
Despite the abrupt flows, widening stability in the stock markets has been increasing investor risk appetite and that looks set to boost riskier and higher-yielding currencies such as the kiwi while damping the yen's safe-haven appeal, traders said.
Tokyo shares climbed after U.S. stocks rose the previous day on increasing optimism the U.S. economy's worst days may be over, with the Nasdaq pushing back into positive territory for the year to date.
"Flows related to the business-year end and the end of the quarter have made price movements volatile in recent days," said Kengo Suzuki, a currency strategist for Shinko Securities, adding that this had disrupted the recent correlation between higher stocks and a weaker yen and dollar.
The dollar fell 0.2 percent from late U.S. trade on Thursday to 98.55 yen as traders said a major Japanese investor was selling the greenback.
The euro edged up 0.2 percent to 133.70 yen, while it rose 0.3 percent against the dollar to $1.3562.
The New Zealand dollar climbed as high as 57.14 yen, its highest since November 11, on the Reuters dealing system, before retreating a tad to 57.00 yen, up around 0.3 percent on the day. It was up 0.3 percent to $0.5786, in reach of a 10-week high of $0.5803 struck on Thursday.
The kiwi's gains comes despite data showing the New Zealand's economy contracted in the fourth quarter at its fastest pace since September 1992, as the market had expected slightly worse figures. (Editing by Edwina Gibbs)