Japan's long-term interest rate has entered the 3% range for the first time in 30 years, yet the stock market is holding near its highs. While rising rates are creating headwinds, the view that the growth scenario for corporate earnings remains intact is gaining ground, putting the market's resilience to the test.
Japan's long-term interest rate has entered the 3% range for the first time in 30 years. Although rising rates are seen as a headwind for the stock market, views that the corporate earnings-growth scenario itself remains intact have emerged, and Japanese stocks are holding near their highs.
Higher rates show little sign of easing even after reaching the key 3% level, and some observers say the market's resilience is being tested as it heads into a new phase. Investors' focus has shifted to the extent to which the speed of rising rates will affect stock prices.
Reports also say that discussion of the relationship between long-term interest rate levels and stock prices has intensified, particularly among overseas investors, following a question raised by Kitaoka Tomoya (北岡智哉), chief equity strategist at Nomura Securities.
The article includes members-only content, and further reports are expected on the detailed figures and outlook.