Japanese Financial Stocks Rise as Government Bond Yield Hits Nine-Year High

By Kosaku Narioka

Japanese financial stocks experienced a significant increase on Monday morning, driven by the 10-year government bond yield reaching a nine-year high. The surge followed an interview in the local daily Yomiuri, where the Bank of Japan’s governor suggested that ending negative interest rates would be a viable option if wage and consumer price gains proved to be sustainable.

  • Sumitomo Mitsui Financial Group shares rose by 4.2%
  • Dai-ichi Life Holdings shares were up by 4.3%
  • Resona Holdings shares saw a 5.3% increase

Meanwhile, the benchmark Nikkei Stock Average dipped slightly to 32,514.55, experiencing a 0.3% decrease.

On Saturday, the Yomiuri reported that BOJ Gov. Kazuo Ueda stated in an interview that the possibility of ending negative rates would be considered if there was convincing evidence of steady wage and consumer price growth.

As a result of the rising government bond yields, currently standing at 0.695%, the highest level since January 2014, banks and insurers can charge higher interest rates on commercial loans and earn better yields from bonds and other investments.

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