In response to Bank of Japan Governor Ueda Kazuo stepping in and making statements aimed at normalizing monetary policy, in the Tokyo stock market on 11-12, purchases anticipating profit margins and expansion due to rising interest rates gathered in bank stocks and insurance stocks. In an interview published in the morning edition of the Yomiuri Shimbun dated 9th, Mr. Ueda suggested that the possibility that the data that determines a virtuous cycle of wages and prices will be available by the end of the year is not zero, and the outlook for interest rates spread.
The TOPIX banking index rose 5.5% this week, and the yield on new 10-year government bonds, which is an indicator of long-term interest rates, temporarily rose to 0.71%, the level since 2014. The exchange rate of yen moved sharply in the direction of appreciation of the yen, in the first half of the 146 yen range.
Many experts expressed their thoughts surrounding the purpose of Mr. Ueda's statement and market reactions through reports and responses to Bloomberg, etc. Hirokazu Kabeya, chief global strategist at Daiwa Securities, expressed a sense of incongruity with the strength of the market reaction, saying, “In order for monetary policy to move towards normalization, it is necessary that conditions such as fixed inflation must be met, and expectations cannot be seen ahead of schedule.” Chief bond strategist Mukuruma Harumi of Mitsubishi UFJ Morgan Stanley Securities expressed the view that it was a statement to fight back against the depreciation of the yen...