The article highlights the view that, assuming a 3% interest-rate era, Japanese stocks can withstand dividend yields of around 4%. On the other hand, if interest rates reach 4.5%, credit unions are said to face a risk of falling below the regulatory threshold for capital adequacy.
There is reportedly a view that long-term interest rates are transitioning to a 3% era, suggesting that high-dividend stocks may be reassessed even in a low-interest-rate environment. Market participants have said that changes in interest-rate levels affect how equity dividend yields are perceived.
On the other hand, when interest rates rise to 4.5%, credit unions face a risk of falling below the regulatory threshold for capital adequacy, prompting attention to a reassessment of capital soundness in the financial sector.
Efforts by Japan and the United States to curb yen weakness and trends in the inflation indicators regarded as the focus of a September rate hike have also been cited as matters of market interest.