(31 January 2013 – Japan) Shares in Japan’s Sumitomo Mitsui Financial Group rose by 5.1 percent over four months upon speculation the country’s stock market rally improved the bank’s earnings in the last quarter.The recent stock market rally also benefited Japan’s other megabanks; Mitsubishi UFJ Financial Group Inc., Japan’s biggest bank and Mizuho Financial Group, the third-largest lender by market value, also saw an increase in value.
Analysts believe the rebound in stocks was fuelled by Japanese Prime Minister Shinzo Abe’s vow to stimulate the economy.
This pledge helped banks recover some of the losses they incurred on their equity holdings in the fiscal first half.
There are signs that domestic lending is recovering with loans at city banks rising for the first time in three years in December.