KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Japanese banks are off to a strong start this fiscal year, with Mizuho Financial Group Inc raising its annual profit forecast to a record ¥1.02 trillion (US$6.9B) after posting better-than-expected first-quarter results.
Key Highlights:
Mizuho: Net income rose 0.4% YoY to ¥290.5B in Q1; full-year profit forecast lifted from ¥940B to ¥1.02T.
Sumitomo Mitsui: Q1 profit hit ¥376.9B, reaching 29% of its full-year goal of ¥1.3T.
Both banks beat analyst estimates and saw gains in net interest income as lending margins improved.
Drivers:
Higher Interest Rates: Japanese lenders are benefiting from improved margins after the Bank of Japan ended its ultra-easy monetary policy last year.
Trade Deal Optimism: A recent US-Japan tariff agreement and a resurgent stock market added momentum to bank shares. Mizuho stock is up 16% YTD; Sumitomo Mitsui gained 2.4%.
Lower Risks: Mizuho expects smaller bad-loan costs and gains from selling stakes in client companies.
Outlook:
It’s rare for a Japanese bank to raise profit guidance so early in the year, signaling confidence in continued lending growth and stable credit conditions.
Mitsubishi UFJ Financial Group, Japan’s largest bank, is set to report earnings Monday, which could further confirm the sector’s strong trend.
Bottom Line: Japan’s megabanks are leveraging rising rates and a more stable trade environment to deliver record earnings, with Mizuho leading the charge and signaling more upside ahead.
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