The broader Topix , which is more influenced by banking shares, gained 0.7% to 1,960.12.
"For the time being, calm has returned to the market, but the SVB problem still needs to be monitored closely - that seems to be the feeling among investors," said Kazuo Kamitani, a strategist at Nomura Securities. Kamitani also pointed to looming U.S. retail sales data and the Federal Reserve's rate-setting meeting next week as reasons not to chase stock prices higher.
"Ultimately, the market is still cautious," he said.
The TSE's banking index had plunged almost 16% over the
previous three sessions. But it had started from an elevated
position, touching a more than seven-year high on Thursday amid
growing conviction that the Bank of Japan would soon let up on
the yield curve controls that have crushed profits from lending.
Japanese officials reiterated assurances on the health of
the financial sector on Wednesday, with Finance Minister
Shunichi Suzuki telling the parliament that a similar crisis to
SVB won't happen in the country.
Notable drags on the Nikkei included startup investor
SoftBank Group , which fell 1.4%, and Uniqlo store
operator Fast Retailing , which slide 1.7%.
(Reporting by Kevin Buckland; Editing by Rashmi Aich and Sherry
Jacob-Phillips)
