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Mitsubishi UFJ Financial Group, Inc. and Sumitomo Mitsui Financial Group, Inc. gain as economy minister’s remarks fuel early rate hike bets
Banking stocks, including Mitsubishi UFJ Financial Group, Inc. <8306>, Sumitomo Mitsui Financial Group, Inc. <8316>, and Mizuho Financial Group, Inc. <8411>, advanced in active trading. During an NHK program on the 12th, Ryomasa Akazawa, Minister of Economy, Trade and Industry, characterized the Bank of Japan's monetary policy as "one possible option" for addressing inflationary pressures. Market participants viewed the remark as paving the way for the BOJ to raise interest rates to mitigate the impact of import inflation fueled by a weaker yen. Expectations of an early rate hike buoyed the banking sector, which typically benefits from higher lending margins.
The sector also drew support from global developments; U.S. President Trump’s announcement of a military blockade of the Strait of Hormuz sent U.S. crude oil futures higher during Asian trading on the 13th. Against this backdrop, Japan’s 10-year government bond yields surged to 2.490%, a level not seen in nearly 29 years.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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