Japanese shares fall as banks track US peers

TOKYO: Japanese shares fell on Friday, as bank shares declined on signs of credit stress at US regional banks, and as a stronger yen hurt sentiment.

The Nikkei slipped 1.44 percent to close at 47,582.15 and the broader Topix fell 1.03 percent to 3,170.44.

The Nikkei volatility index, a gauge of investor anxiety, rose to a six-month high, reflecting investor demand for protection against drops in the stock market.

“This is a typical move when the sentiment is jolted by credit concerns,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

“As the yen strengthened toward the end of the session, the Nikkei extended losses,” he said.

Overnight, US regional bank Zions Bancorporation tumbled 13 percent after it disclosed an unexpected loss on two loans in its California division.

In Japan, Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group declined 3 percent each.