During the Asian trading session, the yield on Japan’s 10-year government bonds rose to 0.660%, the highest level since January 2014.
On the market front, the banking sector led gains in the Nikkei Stock Average, boosting optimism about improved profitability in the industry, as financial firms’ interest income has long been under pressure from domestic low-interest rates.
An index measuring lending institutions in the Japanese stock market surged by 2.8%, marking the largest gain since the Bank of Japan announced adjustments to its yield curve control plan on July 28.
Among individual stocks, Mitsubishi Group rose by 3.3%, Mizuho climbed by 2.4%, Sumitomo Mitsui Financial Group increased by 3.2%, and the Nikkei Stock Average briefly rose by nearly 1%.
