Japanese Banks, Insurers Jump After BOJ’s Surprise Move
- Central bank raises cap on long-term government bond yields
- Tweak may arrest slide in lending rates, analyst says
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Japanese banks and insurers surged in Tokyo trading on prospects that their profitability will improve following the central bank’s surprise move to raise a cap on bond yields.
A Topix gauge of bank shares jumped 5.1%, the most since March 2020, on Tuesday after the Bank of Japan said it will allow 10-year yields to rise to around 0.5%, up from 0.25%. Mitsubishi UFJ Financial Group Inc., Japan’s largest bank, climbed 6%, also the biggest gain in more than two years. Insurance giant Dai-ichi Life Holdings Inc. advanced 9.4% to a record high.