Regional bank stocks lost the strength they had shown in early spring and turned lower from October. The backdrop includes the view that the Bank of Japan is nearing the end of its rate-hike cycle and waning enthusiasm for regional bank consolidation.
Regional bank stocks have continued to underperform, although they had slightly outpaced the broader market since early spring, and turned into a downward trend around October. While the view is spreading that the Bank of Japan's rate-hike cycle is approaching its final stage, some say that investor enthusiasm for regional bank consolidation, which had previously been a buying catalyst, is beginning to fade.
In the Japanese stock market on the 30th, the Nikkei Stock Average fell, closing about 2% lower than the previous day. In addition to the spillover from declines in U.S. technology stocks, some observers said bank stocks were affected by the recognition expressed at the Bank of Japan's Monetary Policy Meeting that underlying inflation had reached the 2% target.