Japan Bond Yield Surge Deepens Regional Bank Stock Divide

mbq9)}vpsr6}p(x57ifo0mxz_media_dl_2.png Nomura Singapore Article content (Bloomberg) — Japan’s rising bond yields are likely to widen the stock performance gap between regional lenders with weaker investment portfolios and those with stronger holdings, according to analysts. Article content Higher interest rates often work in banks’ favor by widening lending margins if supported by central bank action. But when lenders have holdings that are vulnerable to higher yields, they’re punished by investors for the unrealized losses. And the rapid pace at which yields have spiked in recent weeks sugge…