TOKYO, June 26 (Xinhua) -- Tokyo stocks closed higher Friday as investor sentiment was lifted by U.S. stocks rebounding overnight as eased banking regulations, which lifted financial issues here, partly distracted from a severe resurgence in COVID-19 cases in the United States.
The 225-issue Nikkei Stock Average gained 252.29 points, or 1.13 percent, from Thursday to close the day at 22,512.08.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 15.52 points, or 0.99 percent, higher at 1,577.37.
Local brokers said the market inherited a positive lead from Wall Street's rise overnight, as sentiment was bolstered by U.S. banking regulators saying they are loosening restrictions to allow banks to more easily make sizable investments into venture capital and similar funds.
They highlighted that banks will also no longer need to set aside cash for certain derivative trades, which will free up more capital for the industry.
Japanese megabanks here like Mitsubishi UFJ Financial Group and other financial-oriented issues tracked their U.S. peers like Goldman Sachs, JPMorgan Chase and Morgan Stanley higher, as their businesses in the United States are also set to benefit from the eased rules, strategists here said.
"Japanese megabanks and other financial institutions that do business in the United States got a boost from the easing of bank regulations that could free up billions of dollars in the industry," Shingo Ide, chief equity strategist at the NLI Research Institute, was quoted as saying.
Gains were capped however as the U.S. dollar dipped into the lower 107 yen range on continued concerns about a resurgence of COVID-19 cases in the United States leading to some states issuing domestic quarantine rules and businesses in teh hardest-hit states bracing for a possible second round of shutdowns, investment analysts here said.
In addition, some investors opted to secure profits in later trade ahead of the weekend and some selling of companies that will go ex-dividend on Monday was also seen, they added.
Among banking issues finding favor, Mitsubishi UFJ Financial Group rose added 1.3 percent, while Sumitomo Mitsui Financial Group closed 1.7 percent higher.
Other financial-oriented stocks also gained traction, including Daiwa Securities Group rising 1.8 percent and Nomura Holdings advancing 3.6 percent by the close.
By the close of play, bank, securities house, and warehousing and harbor transportation service sectors comprised notable gainers, and issues that rose outpaced those that fell by 1,614 to 496 on the First Section, while 58 ended the day unchanged.
On the main section on Friday, 1.137 billion shares changed hands, dropping from Thursday's volume of 1.305 billion shares.
The turnover on the final trading day of the week came to 2.038 trillion yen (19.069 billion U.S. dollars). Enditem
