Japan’s Bank Stocks Log Worst Day Since 2008 After Rate Hike
- Financials helped Japanese stocks hit new record last month
- Selling pressure in bank stock may be short lived: analysts
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Banking stocks, which have been driving the rally in Japanese equities, suffered the biggest drop since October 2008, as investors moved to take profit following the Bank of Japan’s rate hike.
The Topix Banks Index tumbled 11%, with Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. slumping at least 10%. The losses coincided with a plunge in the main Topix index, which slid 6.1%, the most in eight years.