Tokyo stocks end mixed on concerns over U.S. financial system

Tokyo stocks ended mixed on Tuesday with a weaker yen giving exporters a lift, while concerns reemerging about the health of the US financial system weighed on sentiment following US regulators seizing another embattled lender.

The 225-issue Nikkei Stock Average added 34.77 points, or 0.12 percent, from Monday to close the day at 29,157.95.

The broader Topix index, meanwhile, lost 2.53 points, or 0.12 percent, to finish at 2,075.53.

Dealers here said that regulators seizing San Francisco-based First Republic Bank on Monday due to the bank's huge outflows in deposits amid possible contagion, reignited concerns over the US health system, following the high-profile failures of two US banks recently.

"Not just in the United States, but Japan and the rest of the global stock market have been weighed down by a sense of financial instability," Nomura Securities strategist Maki Sawada was quoted as saying.

They added that among broad financial concerns, investors were in a jittery mood as markets here will be closed for the next three days for the Golden Week holidays.

During this time, European and US central banks are due to set their policies with the Fed continuing with its rate hike policy to tame inflation seeming likely on the heels of a slew of downbeat US economic data, investment analysts here said.

"Investors are reluctant to buy ahead of key events during the holidays," Yutaka Miura, senior technical analyst at Mizuho Securities Co., was quoted as saying.

The yen's retreat against the US dollar and the euro saw exporters and high technology issues find traction, with Panasonic Corp. advancing 2.4 percent and chip-testing equipment maker Advantest Corp. climbing 3.5 percent.

Semiconductor manufacturing equipment, Tokyo Electron, meanwhile, ended the day 1.5 percent higher.

Mitsui and Sojitz lost 1.3 and 4.1 percent, respectively, as both trading houses announced earnings outlooks for the year through March that missed expectations.

By the close of play, precision instrument and pharmaceutical shares led gainers, while real estate and securities house issues comprised those that declined the most.

The turnover on the second trading day of the week came to 2,667.56 billion yen (19.41 billion US dollars).