Japanese Bank Stocks Fall Sharply After Weak U.S. Jobs Data

Japanese bank stocks were lower early Monday after weak U.S. jobs data led to a sharp decline in Japanese government bond yields.
Shares of Mitsubishi UFJ Financial Group were recently down 4.6% in Tokyo, Sumitomo Mitsui Financial Group shares were down 3.5% and Mizuho Financial Group shares were 4.6% lower. The market benchmark Nikkei Stock Average was down 2.1%.
The 10-year JGB yield was 6.5 basis points lower at 1.485%, tracking sharp falls in U.S. Treasury yields on Friday. Weaker-than-expected U.S. employment data has raised expectations that the Federal Reserve will soon cut rates to shore up the U.S. economy.
Lower government bond yields mean lower interest rates on commercial loans given by banks and smaller yields on their bonds and other investments.
Monday's fall in Japanese bank stocks has erased much of their gains made following a recent U.S.-Japan trade deal.
Last week, the Bank of Japan kept its policy rate unchanged but raised its inflation forecasts, fueling expectations for rate increases, as the U.S. trade agreement reduced economic uncertainty.

Sumber : Dow Jones Newswires