Japanese stocks continue to rise, rising interest rates lead to buying of financial institutions such as banks and insurance companies - domestic demand also remains strong

(Bloomberg):The Tokyo stock market continued to rise on the 3rd. Following the rise in government bond yields, financial stocks such as banks and insurance companies were the predominant buyers. Domestic demand stocks were also strong ahead of the release of wage statistics.

Mitsubishi UFJ Financial Group Inc. and Sumitomo Mitsui Financial Group Inc. were major contributors to the TOPIX’s rise, while Tokio Marine Holdings Inc. rose to its highest level in a month. Of the 2,132 stocks in the index, 1,714 rose and 326 fell.

The yield on the 10-year note rose to 0.915%, the highest level since Aug. 6.

Domestic demand stocks such as retailers and land transport companies also rose. Pan Pacific International Holdings, Seven & i Holdings, and JR East also rose.

Ikuo Mitsui, a fund manager at Aizawa Securities Investment Advisory Division, said rising real wages and robust capital investment are expected to boost domestic demand, which will also lead to higher interest rates. He said Japanese stocks are catching up with U.S. stocks.

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29 out of 33 industries on the Tokyo Stock Exchange rose, with insurance the highest increase and precision machinery the highest decrease.
MSCI Asia Pacific Index up 0.1%

Japanese stocks continue to rise, rising interest rates lead to buying of financial institutions such as banks and insurance companies – domestic demand also remains strong

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