Shares of Japan's Three Largest Commercial 'Mega Banks' Decline

The shares of Japan's three largest commercial banks, referred to as 'mega banks', dropped by 13-15% during Monday's auction, amidst a decline of more than 5% in the Tokyo Stock Exchange's (TSE) main index. This information is reported by TASS.

As of 10:12 AM local time (04:12 AM Yerevan time), the value of Mitsubishi UFJ Financial Group's shares fell by 13.91%. This corporation's stocks had the highest trading volume among all commodity and stock exchanges on Monday morning.

The value of Sumitomo Mitsui Financial Group’s shares decreased by 15.27%, placing them second in trading volume on the exchange. Mizuho Financial Group recorded a decline of 13.55%.

The collapse on the Tokyo Stock Exchange is attributed by local observers to concerns over a potential recession in the United States, where labor market statistics released on August 2 fell short of market expectations.

It is noted that the decline in Tokyo's listings continues following the crash that occurred last Friday when the Nikkei index dropped by 5.8% against the backdrop of poor statistics regarding the industrial state of the U.S. in July. At that time, it became the second-largest one-time drop in the history of the TSE. The Nikkei index had only decreased more significantly in October 1987.

Moreover, the data released on August 2 indicated that only 114,000 jobs were added to the American economy in July, while unemployment rose to 4.3%. Investors fear that this could signal a risk of recession in the United States.

It is also reported that another factor contributing to the decline in listings is the strengthening of the national currency, which is disadvantageous for large exporters. On Monday, the exchange rate stands at about 145.5 yen per dollar, the lowest level since mid-January.