By Kevin Buckland
TOKYO, March 31 (Reuters) - Japan's Nikkei share average
headed for its best week in two months on Friday - the lasting
trading day of the country's fiscal year - as easing banking
crisis concerns and a weaker yen bolstered investor sentiment.
However, the benchmark index ended the morning session well
off early highs as shippers tumbled for a second day after going
ex-dividend, and heavyweight chip equipment-maker Tokyo Electron
flipped to a decline after the Japanese government announced
plans to restrict exports.
Investors were also loath to chase the market higher, with
important U.S. inflation data due later in the day.
The Nikkei entered the midday break 0.95% higher at
28,046.75 after pushing above the psychological 28,000 mark for
the first time since March 10. In early trading, it had pushed
as high as 28,124.62, a 1.23% rally, and 342 points above the
previous close.
For the week, the Nikkei has rallied 2.42%, which if
sustained, would be the most since Jan. 27. A 7.48% gain for the
quarter would be the best performance since the end of 2020.
The broader Topix was up 1.04% at 2,003.90 at the
break, topping the 2,000 mark for the first time since March 13.
It has advanced 2.49% this week, also the most in two months.
"Worries about the health of the financial system have, for
now at least, receded, although clearly there are still worries
about what will happen with deposits," said Kazuo Kamitani, a
strategist at Nomura Securities.
Kamitani said he expects the Nikkei to continue its upward
trend over the coming week, although for today, "a gain of more
than 300 points was ultimately, as you might expect, too heavy."
The Tokyo Stock Exchange's (TSE) banking index gained 1.17% and securities firms added 1.25%,
putting them among the top performing sectors.
Transport equipment , including currency-sensitive
automakers, rallied 2.11%.
Shippers , though, tumbled 4.87%, and were alone
among the TSE's 33 industry groups to fall.
Tokyo Electron declined 0.42%, after earlier rising as much
as 1.5%.
(Reporting by Kevin Buckland; Editing by Sonia Cheema)
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