Roundup: Japan's Nikkei ends higher, caution remains amid global banking uncertainty

0 Comment(s)Print E-mail Xinhua, March 28, 2023
Adjust font size:

TOKYO, March 28 (Xinhua) -- Japan's benchmark Nikkei stock index ended higher Tuesday with banking shares bought back following a recent selloff, although concerns remained over the global banking crisis and economic uncertainties in the United States and Europe.

The 225-issue Nikkei Stock Average added 41.38 points, or 0.15 percent, from Monday to close the day at 27,518.25.

The broader Topix index, meanwhile, gained 4.83 points, or 0.25 percent, to finish at 1,966.67.

Local brokers said the market mood was lifted in early trade following U.S. banking issues gaining traction on Wall Street overnight, after news that the assets and loans of collapsed U.S. lender Silicon Valley Bank (SVB) will be bought by rival First Citizens BancShares.

But investment analysts said fears still remained over the global banking crisis further unfolding, following the failures of multiple U.S. regional banks and Switzerland's Credit Suisse being bought out by its bigger rival UBS.

They added that gains were limited as investors opted to book quick profits following gains made in previous sessions, indicating an unsettled market mood overall.

"Bank stocks lifted the market today, but investors sold shares that had outperformed in previous sessions, which limited overall gains," Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities, was quoted as saying.

"Investors still remain concerned about a potential banking crisis and uncertainties about the economy in the U.S. and Europe," Arisawa said.

With the yen's rise weighing on companies with a broad exposure to overseas markets, like exporters, who tend to rely on a weaker yen to boost profits made overseas when they're repatriated and enhance their price-competitiveness in global markets, trading in later play became lackluster, local technical analysts said.

"Sentiment was already weak after a fall in the Nasdaq index, but the stronger yen added to the negativity," Yutaka Miura, senior technical analyst at Mizuho Securities Co., was quoted as saying.

"Market participants had also already expected the Silicon Valley bank to be bought, so the announcement wasn't much of a surprise," Miura said.

Banking shares bounced back including megabanks Sumitomo Mitsui Financial Group gaining 2.7 percent and Mitsubishi UFJ Financial Group advancing 1.7 percent.

Mizuho Financial Group, meanwhile, also closed in positive territory, climbing 2.5 percent, and Resona Holdings was the Nikkei's biggest winner, leaping 4.1 percent by the close.

Energy-oriented stocks found favor following a rise in crude oil futures during New York trading, with refiner Eneos Holdings rising 0.6 percent, while exploration giant Inpex ended 1.9 percent higher.

Technology heavyweights were a drag on the Nikkei, however, with Advantest slipping 0.8 percent, Tokyo Electron retreating 0.3 percent, while Shin-Etsu Chemical dropped 1.2 percent.

By the close of play, bank, mining, and oil and coal product-linked issues comprised those that gained the most.

The turnover on the second trading day of the week came to 2,361.31 billion yen (18.02 billion U.S. dollars). Enditem

Follow China.org.cn on Twitter and Facebook to join the conversation.
ChinaNews App Download
Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:   
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter