Tokyo shares close higher as banking crisis fears ease

TOKYO: Tokyo shares closed higher Tuesday, with the market supported by gains in banking equities as fears of a crisis in the sector eased.

The benchmark Nikkei 225 index added 0.15 percent, or 41.38 points, to end at 27,518.25, while the broader Topix index rose 0.25 percent, or 4.83 points, to 1,966.67.

The dollar fetched 130.90 yen in Asian trade, against 131.56 yen in New York on Monday.

Bank shares rallied overnight in New York after regional US lender First Citizens Bank took over most of its collapsed rival Silicon Valley Bank.

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In Tokyo, “financial stocks led buying, continuing the trend of gains in US bank stocks as concern over the financial system eased,” IwaiCosmo Securities said.

But the stronger yen weighed on the market, it added.

Both the Dow and S&P 500 advanced Monday on Wall Street, although the Nasdaq finished lower following a choppy session.

In Tokyo, Sumitomo Mitsui Financial Group soared 2.66 percent to 5,273 yen and Mitsubishi UFJ Financial Group jumped 1.70 percent to 840 yen.

Uniqlo operator Fast Retailing gained 1.19 percent to 27,975 yen but SoftBank Group dropped 1.39 percent to 4,888 yen.