Tokyo stocks close down as bank shares tumble

Tokyo stocks fell on Thursday, dragged down by the banking sector after a drop in US bank shares on regulation concerns, as worries lingered about Brexit and oil prices.

The benchmark Nikkei 225 index lost 0.20 percent or 42.86 points to close at 21,803.62, while the broader Topix index was down 0.14 percent or 2.29 points at 1,638.97.

"Bank shares were hit hard by a drop in the US banking sector on concerns over a possible end to easing of regulations," Daiwa Securities senior technical analyst Hikaru Sato told AFP.

The sell-off came after a senior Democratic lawmaker in Washington vowed to halt further easing of post-crisis banking regulations.

A higher yen against the dollar also discouraged investors from actively buying, Okasan Online Securities said in a commentary.

The dollar was quoted at 113.52 yen in Asian afternoon trade, down from 113.64 yen in New York and 113.91 yen in Tokyo on Wednesday.

Currency traders were watching "falls in oil prices, Brexit, the Italian fiscal issue, falls in US share prices, and US trade policy," Mizuho Securities said in a commentary.

In Tokyo, the banking sector was among major losers. Sumitomo Mitsui Financial Group tumbled 3.04 percent to 4,295 yen with Mitsubishi UFJ Financial Group down 3.16 percent at 654.9 yen. Mizuho Financial Group lost 1.74 percent to 191.8 yen.

The tech sector dropped after Apple lost 2.8 percent on downcast assessments of iPhone sales.

Apple's parts supplier Murata Manufacturing fell 1.00 percent to 16,830 yen, while TDK slumped 3.13 percent to 8,950 yen with Alps Electric down 1.37 percent at 2,517 yen.

si-kh/sah/rox