April 24, 2018 / 2:23 AM / a month ago

Nikkei rises, financials lead gains on higher U.S. yields

TOKYO, April 24 (Reuters) - Japan’s Nikkei share average rose to near seven-week highs on Tuesday, with financials leading the gains after U.S. bond yields spiked to four-year highs.

The Nikkei advanced 0.67 percent to 22,235, near last week’s high of 22,360 while the broader Topix gained 0.71 percent to 1,763.

Banks rose 1.9 percent, with Mitsubishi UFJ climbing 2.5 percent and Sumitomo Mitsui Financial up 1.5 percent. Insurers gained 1.4 percent.

With Japanese financial institutions stepping up investment and lending in the United States in recent years as negative interest rates at home crushed domestic returns, higher U.S. borrowing costs are seen as improving their margins.

Exporters also benefited from a fall in the yen to 10-week lows, with Toyota rising 1.6 percent and Shin-Etsu Chemical up 1.5 percent.

Reporting by Hideyuki Sano Editing by Shri Navaratnam

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