Japanese Bank Stocks Slide as JGB Volatility Stokes Loss Fears

Japan’s financial stocks declined as Tuesday’s government bond meltdown raised alarms about potential losses for lenders and brokerages.

The Topix’s banking and securities subindexes were the benchmark’s worst performers Wednesday, falling as much as 3.2% and 3.6%, respectively. Shares of megabanks Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. dropped over 3% in their steepest declines since November.