Japan Financial Stocks Jump as 10-Year Government Bond Yield Hits 9-Year High

By Kosaku Narioka

Japanese financial stocks rose sharply Monday morning as the 10-year government bond yield hit a nine-year high after the Bank of Japan's governor said in an interview with local daily Yomiuri that ending negative interest rates would be an option if wage and consumer price gains look sustainable.

Sumitomo Mitsui Financial Group shares were recently 4.2% higher, Dai-ichi Life Holdings shares were up 4.3% and Resona Holdings shares were 5.3% higher. The benchmark Nikkei Stock Average was recently down 0.3% at 32514.55.

Japanese daily Yomiuri reported Saturday that BOJ Gov. Kazuo Ueda said in an interview that if he is convinced that there has been a sustainable increase in wages and consumer prices, ending negative rates would be on the table.

The 10-year Japanese government bond yield was recently up 5 basis points at 0.695%, its highest level since January 2014. Higher bond yields mean that banks and insurers can charge higher interest rates on commercial loans and earn better yields from bonds and other investments.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

September 10, 2023 21:36 ET (01:36 GMT)

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