Japan yields scale 15-year peaks, bank shares surge as BOJ hikes rates
Corrects to say Resona was best-performing bank stock, not best-performing stock in 12th paragraph
By Kevin Buckland and Tom Westbrook
TOKYO, July 31 (Reuters) -Short-term Japanese government bond yields scaled 15-year peaks and Japanese bank shares soared on Wednesday as the Bank of Japan raised interest rates for only the second time since 2007 while announcing a halving of its monthly bond buying.
The two-year JGB yield JP2YTN=JBTC jumped as much as 8 basis points (bps) to reach 0.45% for the first time since April 2009. The five-year yield JP5YTN=JBTC added 8 bps to 0.665%, the highest since November 2009.
The Tokyo Stock Exchange's banking index .IBNKS.T advanced 4.7%, with big gains for lenders helping the Nikkei share average .N225 to reverse earlier declines.
Exporter shares also recovered after the yen gave up early gains to stabilize around 153 per dollar JPY=EBS, following volatile trading in the aftermath of the policy announcement.
The BOJ hiked the key rate target to 0.25% from near zero, and also unveiled a quantitative tightening (QT) plan that would roughly halve monthly bond buying to 3 trillion yen ($19.6 billion), from the current 6 trillion yen, as of early 2026.
In March, the BOJ had ended its negative rate policy and set the overnight call rate as its new policy rate, guiding it in a range of 0-0.1%.
"Given that today's decision is only four months after the first hike, the market should think the BOJ is perhaps a bit more hawkish than it thought," said Naka Matsuzawa, chief macro strategist at Nomura.
"The faster-than-expected rate hike makes the case that the BOJ wants to push up short-end yields."
Investors had been bracing for the change after local media reports overnight said the central bank was mulling such a move, and JGB yields began their climb higher from Wednesday's open.
The 10-year JGB yield JP10YTN=JBTC rose as much as 6 bps to 1.055%, although that fell shy of the 13-year peak of 1.1% touched three times over the past two months.
Higher rates promise to improve lending margins and boost investment income, and banking shares were the big beneficiary of the BOJ's policy decision.
Resona Holdings 8308.T was the Nikkei's best performing bank stock with a 6.7% jump, while Mizuho Financial Group 8411.T gained 5.1% and Sumitomo Mitsui Financial Group 8316.T added 4.5%.
The Nikkei .N225 ended the day up 1.5% at 39,101.82, reversing earlier declines of as much as 1.5% and recovering the psychologically important 39,000 level for the first time in a week.
The broader Topix .TOPX finished up 1.5%. A subindex of value shares .TOPXV rallied 1.7%, outpacing a 1.2% rise in growth shares .TOPXG.
Japanese lenders have attracted larger foreign investment flows than other sectors, as investors see them as top beneficiaries of potential monetary tightening.
Banks lured an estimated 472 billion yen of net stock purchases in the year to July 25, according to J.P. Morgan's quantitative strategy team. That's more than double the flows into the automobiles and components sector, another top performer.
Most automakers reversed early declines to finish the day higher, but Toyota Motor 7203.T was an exception, sagging 1.6% after Japan's transport ministry issued a corrective order over violations in vehicle certification procedures.
($1 = 152.9900 yen)
Reporting by Kevin Buckland; Editing by Mark Potter
Actifs liés
Dernières actualités
Avertissement : Les entités de XM Group proposent à notre plateforme de trading en ligne un service d'exécution uniquement, autorisant une personne à consulter et/ou à utiliser le contenu disponible sur ou via le site internet, qui n'a pas pour but de modifier ou d'élargir cette situation. De tels accès et utilisation sont toujours soumis aux : (i) Conditions générales ; (ii) Avertissements sur les risques et (iii) Avertissement complet. Un tel contenu n'est par conséquent fourni que pour information générale. En particulier, sachez que les contenus de notre plateforme de trading en ligne ne sont ni une sollicitation ni une offre de participation à toute transaction sur les marchés financiers. Le trading sur les marchés financiers implique un niveau significatif de risques pour votre capital.
Tout le matériel publié dans notre Centre de trading en ligne est destiné à des fins de formation / d'information uniquement et ne contient pas – et ne doit pas être considéré comme contenant – des conseils et recommandations en matière de finance, de fiscalité des investissements ou de trading, ou un enregistrement de nos prix de trading ou une offre, une sollicitation, une transaction à propos de tout instrument financier ou bien des promotions financières non sollicitées à votre égard.
Tout contenu tiers, de même que le contenu préparé par XM, tels que les opinions, actualités, études, analyses, prix, autres informations ou liens vers des sites tiers contenus sur ce site internet sont fournis "tels quels", comme commentaires généraux sur le marché et ne constituent pas des conseils en investissement. Dans la mesure où tout contenu est considéré comme de la recherche en investissement, vous devez noter et accepter que le contenu n'a pas été conçu ni préparé conformément aux exigences légales visant à promouvoir l'indépendance de la recherche en investissement et, en tant que tel, il serait considéré comme une communication marketing selon les lois et réglementations applicables. Veuillez vous assurer que vous avez lu et compris notre Avis sur la recherche en investissement non indépendante et notre avertissement sur les risques concernant les informations susdites, qui peuvent consultés ici.
