Resona HD fell sharply for a second straight session. With reports that the BOJ plans to leave its policy rate unchanged at its October meeting, the shares entered a phase in which regional bank stocks, in particular, were again viewed negatively.
Resona Holdings' share price was sharply lower, trading around ¥2,129 after falling significantly from the previous day. The article cites reports that the BOJ plans to leave interest rates unchanged at its next meeting as the backdrop to the decline. It also presents the view that the market is assessing the impact of the rate hike decided at the previous meeting.
The BOJ is reportedly planning to leave its policy rate unchanged at the current level of 1.25% at its October meeting. Ahead of the announcement, regional bank stocks, including Resona HD, are said to have the potential to extend their already-priced-in negative reaction. Long-term interest-rate trends are also cited as a headwind for the market.
Across the market, long-term interest rates in Japan and the US have continued to trend lower, and this is expected to affect the valuation of bank stocks. While the report includes the view that the decision to forgo a rate hike had already been priced in, it may once again act as negative news.
Regional bank stocks, led by Resona HD, are expected to come under renewed negative pressure following the report. As the market continues to assess the outlook for rate hikes and interest-rate trends, some have pointed to the need for caution regarding future developments.