Mitsubishi UFJ Bank has become the most valuable company listed on the Tokyo Stock Exchange as of Monday, surpassing automaker Toyota. This shift follows the Bank of Japan’s decision to raise its benchmark interest rate to the highest level in three decades, according to reports from EFE and Agerpres.
At the close of trading on Monday, Mitsubishi UFJ’s shares rose by 2.77%, pushing its market capitalization to over 42.2 trillion yen (approximately 228.6 billion euros). This marks the first time Mitsubishi UFJ’s market value has exceeded that of Toyota, which stands at 41.03 trillion yen, ending Toyota’s 22-year reign as the leader.
In recent weeks, Toyota has temporarily lost its top position to telecommunications and investment giant SoftBank and semiconductor maker Kioxia, largely driven by the artificial intelligence boom. This is the first time since the bursting of the financial bubble that a financial institution has claimed the title of most valuable company on the Tokyo Stock Exchange, amid a notable rebound in bank stocks following interest rate hikes.
During last month’s monetary policy meeting, the Bank of Japan decided to raise short-term interest rates to 1%, the highest level since 1995, and indicated its intention to continue increasing rates in the future, targeting a 2% inflation rate.
As of Monday’s trading close, the Nikkei index, which tracks the 225 most representative stocks on the Tokyo Stock Exchange, declined by 1.12%, or 770.87 points, settling at 67,786.86 points.
