Tokyo stocks end sharply higher but banks sag

Japanese stocks closed sharply higher on Wednesday but gains were overshadowed by continued losses in banks including UFJ Holdings Inc, as well as UFJ's major borrowers.
The Nikkei average finished up 1.73 percent at 11,152.09, having risen as high as 11,213.79.
The broader TOPIX index put on 1.04 percent to 1,127.24.
Technology stocks such as Kyocera Corp and Fujitsu Ltd drew buying because investors saw them as undervalued given bright earnings prospects, analysts said.
Retailers and steel makers also rose, with the market's mood cheered by Wall Street's overnight gains on the back of easing oil prices.
But analysts said such gains were mainly due to a knee-jerk reaction to a rise on Wall Street, and market sentiment remained fragile amid a lack of players, who are holding back amid uncertainty over Wall Street's short-term outlook.
Investors are also cautious about trading as speculation mounts over whether the Organisation of Petroleum Exporting Countries (OPEC) will agree to raise oil output at a June 3 meeting in Beirut.
"There are few trading factors at home as the corporate earnings season is drawing to an end. That's why the market is so dependent on US stocks," said Terushi Hirotama, head of trading at Ichiyoshi Securities.
"But that means if Wall Street wilts tonight then Tokyo will also go down tomorrow."
Roughly 1.11 billion shares changed hands on the first section, up from Tuesday's total of 1.061 billion but still down sharply from last week's average of 1.393 billion.
Advancers outnumbered decliners 1,043 to 400.
Vodafone Holdings KK was in the spotlight. Its shares surged 16.39 percent to 284,000 yen after it said on Tuesday its British parent, Vodafone Group Plc, would buy Vodafone Holdings shares at 300,000 yen each in the market.
Kyocera, the world's largest maker of ceramic packages that house microchips, climbed 2.71 percent to 9,100 yen. Chips-to-computers conglomerate Fujitsu was up 2.22 percent at 736 yen.
But UFJ, the smallest of Japan's four megabanks, lost 2.89 percent to 572,000 yen.
Bigger rival Mizuho Financial Group fell 1.29 percent to 460,000 yen, dragging down the banking sector's sub-index by 0.72 percent and making it the worst-performing sector.