Tokyo stocks close higher with eyes on politics

TOKYO: Tokyo stocks closed higher on Friday, boosted by gains in Asian shares, with investors focused on Japanese politics ahead of a ruling party leadership vote.

The benchmark Nikkei 225 index gained 1.25 percent, or 373.65 points, to end at 30,381.84, while the broader Topix index rose 1.29 percent, or 26.72 points, to 2,091.65.

"The Nikkei index hovered around 30,100 but it gradually increased its gains as Asian shares began to rise," Online Okasan Securities said in a note.

In Tokyo trading, SBI Holdings soared 7.62 percent to 3,020 yen after a report said it will make a tender offer for Shinsei Bank. Trade in Shinsei Bank shares was suspended following the report.

NEC jumped 3.85 percent to 6,200 yen while Fujitsu climbed 3.53 percent to 21,970 yen. Nikon gained 3.38 percent to 1,343 yen.

Tokyo Electric (TEPCO) dropped 6.21 percent to 302 yen while Kansai Electric edged up 0.80 percent to 1,129 yen ahead of an expected announcement by Taro Kono, Japan's minister for administrative reform, that he will run for leadership of the ruling Liberal Democratic Party (LDP).

Before the closing bell, Japanese media reported that Kono -- who has previously backed scrapping nuclear energy -- would later Friday pledge to push for a "realistic energy policy that satisfies the industry".

Prime Minister Yoshihide Suga has said he will not run in the LDP's September 29 leadership vote, and whoever wins will lead the party into general elections in either October or November.

The dollar fetched 109.90 yen in Asian trade against 109.72 yen in New York late Thursday.