Resona Holdings' share price fell more than 7% at one point, and bank stocks broadly came under selling pressure. The decline in long-term interest rates and risk aversion in US markets were behind the move, and interest in the outlook for bank stocks may remain strong.
Resona Holdings' share price fell more than 7% at one point, while bank stocks including Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group also came under pressure.
The backdrop included a renewed sense of caution in New York trading on the 22nd over excessive investment by AI-related companies, which strengthened investors' risk-averse stance. US long-term interest rates fell below 5%, while domestic long-term interest rates also continued to trend lower.
As reports indicated that the Bank of Japan had deferred consecutive rate hikes at its October monetary policy meeting, expectations for wider net interest margins at banks receded, and selling to reduce long positions prevailed.