Nikkei index closed higher, supported by bank shares ‎

Japan’s Nikkei index closed higher on Tuesday, as gains in banking and chip-related companies offset losses-driven selling in Hong Kong and other regional stock exchanges.

According to Reuters, the Nikkei index rose 0.32% to close at 32,493.89 points on the first working day after a three-day holiday in Japan. The index rose as much as 1% in early trading, tracking gains on Wall Street, but the weak performance of stocks after the opening of Chinese markets led to the Nikkei index falling into the red zone in early afternoon trading in Tokyo.

The financial sector led the gains on the Tokyo Stock Exchange, as the sector index rose 2.18%, outperforming by a large margin the 32 sub-indices on the stock exchange.

This came after similar stocks rose in the United States in the past sessions, while some pointed to the impact of increased speculation that the Bank of Japan will adjust its monetary policy next week.

Chipmaker Tokyo Electron Co. provided the biggest support for the Nikkei, adding 20 points, up 1%. It had risen earlier by 3 percent

The broader Topix index also rose 0.59% to 2,252.28 points.

The Nikkei index has been recovering since the middle of last week, when it plunged 5.4%, after reaching its highest closing level in 33 years, at 33,753.33 points, on the third of July.

Advantest, a maker of chip testing equipment, closed 0.6% higher, after jumping 3% earlier.

Sony Group shares also recorded gains, up 2.56 percent

The biggest loser was Rakuten, an e-commerce company, which fell 6.16 percent. The stock had risen about 20 percent since late June and hit a one-month high in the last session.