Bank shares were broadly higher, with megabanks in particular showing firm performance. Expectations for an additional Bank of Japan rate hike have emerged as a market catalyst, while regional bank stocks are also expected to recover in valuation.
Bank shares have risen broadly, with major banks such as Mitsubishi UFJ Financial Group and Mizuho Financial Group continuing to perform firmly. Regional banks in Nara and the Hokuriku region have also remained prone to buying.
ほくほくフィナンシャル・グループ hit a record high for the first time in 4 sessions, while other regional bank-related stocks have also continued to reach year-to-date highs.
Strong first-quarter consolidated results for the current fiscal year overall have raised expectations for full-year results to exceed forecasts, helping drive fund inflows. Expectations have strengthened that the Bank of Japan will decide on an additional rate hike at its next meeting, providing a backdrop to the movement in bank share prices.
Around 2025, many regional bank stocks had price-to-book ratios below 1x, but the number of stocks above 1x has now been increasing. As a result, bank stocks, including regional banks, are undergoing a revaluation.