As retail money increasingly shifts from savings to government bonds amid competition for deposit funding in a rising-rate environment, views are gaining ground that the benefits for domestic bank stocks are fading.
The premise that domestic bank stocks are buys in a rising-rate environment is beginning to change, with gains in megabank stocks since the additional rate hike reportedly lagging the Nikkei Stock Average.
The market is focused on competition for deposit funding against a backdrop of higher interest rates, while speculation has also emerged that the government is considering preferential measures for Japanese government bonds for retail investors.
In Tokyo stock trading on the 25th, the Nikkei Stock Average continued to rise, while shares of Mitsubishi UFJ Financial Group and Mizuho Financial Group rebounded for the first time in 6 trading days.