Japanese shares extend gains as worries over banking crisis ease

By Yantoultra Ngui SINGAPORE, March 17 (Reuters) - Japan's Nikkei share average extended gains on Friday, led by banking and electronics stocks, following the easing of concerns over crisis at U.S. private lender Silicon Valley Bank and Swiss bank Credit Suisse Group . The Nikkei climbed 0.68% to 27,193.70 by the midday break, while the broader Topix rose 0.74% to 1,951.39. The rise follows a risk rally in the broader Asian markets following a tumultuous week that saw a brewing banking crisis that sent bond yields plunging while market participants sharply lowered expectations of future interest rate hikes in Western economies. "The rescue package from U.S banks reassured the public's confidence in the banking system, causing a relief rally," said Tina Teng, markets analyst at CMC Markets.

"The recent event suggests that central banks are most likely to temper their rate hikes, which could be a fundamental change to stock markets." Investors are now on the watch for any developments as policy tightening by central banks could persist. The European Central Bank on Thursday raised interest rates by half a percentage point.

The Japanese yen pulled back from its one-month high to 133.78 per dollar on Friday.

Top gainers in the Nikkei included electronics giant Sony Group Corp and financial institution Nomura Holdings Inc , up 2.54% and 0.86%, respectively. Construction firm Taisei Corp and car maker Mazda Motor Corp , down 7.45% and 2.15%, respectively, led declines. Overall, gainers beat losers by 126 to 91, while eight remained unchanged. The biggest percentage gainers in the Topix were entertainment company Sanrio Co Ltd and education firm Business Breakthrough Inc , up 16.73% and 13.38%, respectively. Social shopping firm Enigmo Inc and real estate investment portal firm Firstlogic Inc were the biggest decliners, down 12.75% and 9.15%, respectively. Gainers in the Topix outpaced losers by 1,476 to 566, with 117 remaining unchanged.
(Reporting by Yantoultra Ngui; Additional reporting by Ankur Banerjee)

Reuters

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Japanese shares extend gains as worries over banking crisis ease

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