Japanese bank stocks fall sharply after JP Morgan cuts interest rates

Japan’s three largest banks are cutting their interest rates on Friday, pushing their stock prices lower.JP Morgan, Nomura and Mizuho Bank cut their yields to 4.1%, 4.3% and 4.4%, respectively, while Daiwa Bank, Mizuhos biggest stockholder, lowered its yield to 2.75%.

The banks cut their spreads on the Japanese yen, which fell 0.5 basis points against the dollar on Friday after the yen dropped 1.2 percent against the greenback on Wednesday.

The move by JP Morgan, which owns more than 60% of Japanese shares, is expected to help its bottom line in the months ahead.

The Japanese government is also seeking to boost the economy, which has been hit by a series of recent weak earnings, a slowdown in the pace of economic growth and a surge in inflation.