Japanese banks rally after BoJ rate hike; MUFG hits record high

Published 28/01/2025, 11:16
© Reuters.

Investing.com -- Shares of Mitsubishi UFJ (NYSE:MUFG) Financial Group Inc., Japan's largest bank by market value, closed at a record high, fueled by optimism for increased lending income due to rising interest rates.

The bank's stock rose 2.5% to ¥1,969.5 ($12.7), marking the highest value since its listing in April 2001.

The Bank of Japan has recently raised its key policy rate to the highest level in 17 years. This move has led investors to prepare for additional increases, with expectations that Japanese rates may reach 1% or more by next year, if not sooner.

Other Japanese lenders also experienced a rise in their shares.

Sumitomo Mitsui Financial Group (NYSE:SMFG) Inc. saw a 2.2% increase, while Mizuho (NYSE:MFG) Financial Group Inc. advanced by 2.8%.

The Topix index, which includes a measure of banks, also added 2.2%. This upward trend has positioned banks as the second-best performers for the past 12 months.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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