Japanese Stocks Under Pressure, Banks and Bonds Focus of Concerns
Japanese stocks continued to decline for a fifth straight day on Wednesday, driven by a sell-off in the banking sector. The Nikkei 225 Index fell 0.41% to 51,774, while the broader Topix Index weakened 0.99% to 3,590. Shares of major banks such as Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial each fell more than 3%, as increased bond market volatility fueled concerns about potential trading losses.
Japanese government bond (JGB) yields briefly surged to new highs earlier in the week due to fiscal concerns related to a proposed 8% sales tax cut on food. Finance Minister Satsuki Katayama subsequently attempted to calm the market, but investor concerns remained high. This kept the market wary of the risk of further volatility.
Investors are also focused on the snap general election on February 8, which Prime Minister Sanae Takaichi called to consolidate power and push through her expansionary fiscal agenda. Meanwhile, the Bank of Japan is expected to maintain its current monetary policy unchanged, maintaining stability amid market pressures. (az)
Source: Newsmaker.id
