Mitsubishi UFJ Financial Group's market capitalisation surpassed 42 trillion yen on the 13th, overtaking Toyota Motor to become the top. As the artificial intelligence rally takes a breather, the three megabanks have all entered the top ten by market cap, with market participants viewing this as a phenomenon symbolising the inflation era. Naoki Fujiwara, senior fund manager at Shinkin Asset Management, pointed out that it reflects expectations for bank stocks, which stand to benefit from the return of interest rates and financial normalisation. Shoji Hirakawa, chief global strategist at Tokai Tokyo Intelligence Lab, said the domestic theme is a shift to inflation, and that during inflationary phases the risk premium on investment returns declines rapidly, pushing up stock valuations. Takashi Hiroki, chief strategist at Monex Securities, noted that the resilience of financial stocks, which had been rallying alongside tech stocks, has become more pronounced with the AI rally pausing, and sees it as a healthy market with effective rotation.
Mitsubishi UFJ Financial Group, Inc.Article highlights MUFG as top market cap, benefiting from return of interest rates and financial normalisation in inflation era.
Toyota Motor Corp.