TOKYO, April 15 Reuters Japanese shares closed slightly higher on Thursday, led by cyclical firms that would benefit from a global economic rebound and banks which tracked their U.S. peers, while a fall in technology stocks capped gains.

Nikkei share average edged up 0.07 to close at 29,642.69, after briefly retreating following a senior politicians comments on the possible cancellation of the Tokyo Olympics.

The broader Topix rose 0.54 to 1,962.78.

There are concerns about the economic slowdown in Japan due to a resurgence of the virus, but investors are looking at the economic sensitive stocks that would benefit from foreign demand, said Norihiro Fujito, chief investment strategist, Mitsubishi UFJ Morgan Stanley Securities.

Particularly, foreign trades are expected to be active and that is boosting shipping firms.

The Topix subindex for shippers gained most among the 33 sector subindexes on the Tokyo exchange, with Nippon Yusen jumping 4.37, Mitsui OSK Lines rising 2.77 and Kawasaki Kisen gaining 3.43.

The subindexes for mining and oil refiners also advanced.

Chiprelated firms Tokyo Electron and Advantest fell 1.94 and 2.6, respectively, after an analyst at Mitsubishi UFJ Morgan Stanley cut their investment ratings.

Financial shares rose after Goldman Sachs Group Inc and Wells Fargo Co advanced on bumper firstquarter profits.

Mitsubishi UFJ Financial Group rose 1.28, Sumitomo Mitsui Financial Group gained 1.58 and Nomura Holdings advanced 2.01.

Seven i…