And shares of Nomura Holdings and Daiwa Securities recorded gains of 4.5 percent each, as investors were reassured after assurances by US Treasury Secretary Janet Yellen that deposits in small banks would be protected.
The Nikkei index rose 1.9 percent, the largest increase since January 18, to close at 27,466.61 points.
The financial sector shares increased by 2.6 percent, recording the second best performance in the general index, after the energy sector, whose index rose 2.7 percent.
The broader Topix index rose 1.7 percent to 1,962.93 points.
Japanese markets were closed on Tuesday for a public holiday.
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