Japan Bank Stocks Tumble as Trump's Tariff Plan Raises Uncertainty Over BOJ's Pace of Rate Increases

Dow Jones04-03

By Kosaku Narioka

Japanese bank stocks fell sharply as President Trump's new tariff plan raised uncertainty over the Asian country's economic outlook and the pace of further rate increases by the central bank.

Shares of Mitsubishi UFJ Financial Group were recently 7.2% lower on Thursday morning, Sumitomo Mitsui Financial Group was down 7.4% and Resona Holdings was 9.6% lower. The banking sector was the worst performer in Japan, where the benchmark Nikkei Stock Average was down 3.0%.

President Trump announced a sweeping new tariff plan on Wednesday, including 24% duties on imports from Japan.

The 10-year Japanese government bond yield fell sharply, briefly dropping 13 basis points to 1.340%. Falls in bond yields mean that banks can charge lower interest rates on commercial loans and earn smaller yields from bonds and other investments.

Bond yields have risen in recent years as the Bank of Japan raised rates gradually on the back of an economic recovery and a return of modest inflation.

In March, the BOJ kept its policy rate unchanged as it expressed concern over the potential impact global trade frictions could have on the Japanese economy.

At the time, Gov. Kazuo Ueda voiced caution about the impact of President Trump's tariff plans, adding that higher tariffs could directly affect trade and other economic activity or undermine confidence among companies and households.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

April 02, 2025 21:39 ET (01:39 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

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","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"MUFG":"三菱日联金融","BK4207":"综合性银行","SMFG":"三井住友金融"},"translate_title":"特朗普关税计划增加日本央行加息步伐的不确定性，日本银行股暴跌","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MUFG":0.9,"SMFG":0.9,"USDJPY.FOREX":1},"content_text":"By Kosaku Narioka \n\n\n \n\n\n  Japanese bank stocks fell sharply as President Trump's new tariff plan raised uncertainty over the Asian country's economic outlook and the pace of further rate increases by the central bank. \n\n\n  Shares of Mitsubishi UFJ Financial Group were recently 7.2% lower on Thursday morning, Sumitomo Mitsui Financial Group was down 7.4% and Resona Holdings was 9.6% lower. The banking sector was the worst performer in Japan, where the benchmark Nikkei Stock Average was down 3.0%. \n\n\n  President Trump announced a sweeping new tariff plan on Wednesday, including 24% duties on imports from Japan. \n\n\n  The 10-year Japanese government bond yield fell sharply, briefly dropping 13 basis points to 1.340%. Falls in bond yields mean that banks can charge lower interest rates on commercial loans and earn smaller yields from bonds and other investments. \n\n\n  Bond yields have risen in recent years as the Bank of Japan raised rates gradually on the back of an economic recovery and a return of modest inflation. \n\n\n  In March, the BOJ kept its policy rate unchanged as it expressed concern over the potential impact global trade frictions could have on the Japanese economy. \n\n\n  At the time, Gov. 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