Japanese Bank Stocks Rally Following Interest Rate Hike Announcement

Japanese bank stocks rose the most in a month after the Bank of Japan announced plans to discuss raising interest rates at the end of its policy meeting. The Topix Banks Index climbed 3.1%, with Japan`s largest lenders including Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group all rising more than 2%. The central bank will consider raising rates to around 0.25%, in line with market rates. Increased speculation around rate hikes has pushed real estate shares lower as higher borrowing costs are expected to weigh on developers.