TOKYO: Japanese shares closed slightly higher on Thursday, led by cyclical firms that would benefit from a global economic rebound and banks which tracked their US peers, while a fall in technology stocks capped gains.

Nikkei share average edged up 0.07% to close at 29,642.69, after briefly retreating following a senior politician’s comments on the possible cancellation of the Tokyo Olympics.

The broader Topix rose 0.54% to 1,962.78.

The Topix subindex for shippers gained most among the 33 sector sub-indexes on the Tokyo exchange, with Nippon Yusen jumping 4.37%, Mitsui OSK Lines rising 2.77% and Kawasaki Kisen gaining 3.43%.

The sub-indexes for mining and oil refiners also advanced.

Chip-related firms Tokyo Electron and Advantest fell 1.94% and 2.6%, respectively, after an analyst at Mitsubishi UFJ Morgan Stanley cut their investment ratings.

Mitsubishi UFJ Financial Group rose 1.28%, Sumitomo Mitsui Financial Group gained 1.58% and Nomura Holdings advanced 2.01%.

Seven & i Holdings, up 5.41%, was the largest percentage gainer on the Nikkei, followed by Nippon Yusen and Sumitomo Metal Mining, which rose 3.98%. The largest loser on the Nikkei was Casio Computer, down 3.12%, followed by Screen Holdings, which fell 3.01%, and Advantest.