TOKYO: Tokyo markets closed higher on Friday, supported by gains of chip-linked shares, following US rallies on eased concern over bank failures.

The benchmark Nikkei 225 index gained 1.20 percent, or 323.18 points, to 27,333.79, while the broader Topix index climbed 1.15 percent, or 22.32 points, to 1,959.42.

“Following the trend of major stock indexes rising across the board in the US and Europe, a wide range of stocks were bought” in Tokyo, Iwai Cosmo Securities said in a note.

Overnight, Wall Street stocks finished solidly higher after a consortium of major US private banks announced a $30 billion rescue package for embattled lender First Republic.

There have been fears surrounding First Republic in the wake of Silicon Valley Bank’s rapid collapse last week.

Both lenders had a heavy share of uninsured deposits that were vulnerable to a run by depositors.

Iwai Cosmo Securities added that “a sense of caution still remains.”

The Bank of Japan announced on Friday it was holding a meeting with the Ministry of Finance and the Financial Services Agency later in the day.

Nikkei snaps 3-day losing run as Japan banks rise on easing contagion fears

The dollar fetched 132.90 yen in Asian trade, against 133.69 yen in New York late Thursday.

In Tokyo trading, chip-linked shares jumped with Tokyo Electron gaining 2.92 percent to 48,560 yen and Advantest, which makes semiconductor tests, surging 3.32 percent to 11,820 yen.

Sony Group soared 3.51 percent to 11,630 yen, while Uniqlo operator Fast Retailing added 0.93 percent to 27,985 yen.