ADRs in Focus: Japanese banks and financials climb
NEW YORK—U.S.-traded shares of Japanese banks and financial stocks rose in afternoon trading Monday, following Wall Street higher amid anticipation the Federal Reserve may reduce interest rates later this week.
It is widely expected that the Fed will lower its federal funds rate another quarter point on Wednesday, which would mark the seventh cut since September. The rate affects numerous interest rates charged to businesses and people.
Japanese financial stocks soared, including Mitsubishi UFJ Financial Group, which rose 81 cents, or 8 percent, to $10.94. Mizuho Financial Group gained $1.07, or 11.4 percent, to $10.44.
Orix Corp. rose $6.86, or 8.1 percent, to $91.45, and Nomura Holdings Inc. advanced $1.84, or 12 percent, to $17.23. Both companies are based in Tokyo.
The Bank of New York Japanese ADR index rose 3.17 points, or 3.03 percent, to $107.72. The index is composed of stocks trading as ADRs, or American Depositary Receipts, which are securities that allow U.S. investors to trade shares of companies based overseas.
The Bank of New York Asia ADR index gained 2.44 points, or 1.5 percent, to 164.21 in afternoon trading.
Tokyo's benchmark Nikkei 225 Stock Average index advanced 30.90 points, or 0.22 percent, to 13,894.37 on the Tokyo Stock Exchange, a two-month high.
