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Japan stocks hindered by higher cost of capital as interest rates rise

JAPEX, Mebuki Financial boost ROE targets, looking to buck trend The Nikkei Stock Average has seen increased volatility since reaching a record high on June 25. (Photo by Jumpei Kinefuchi) TOKYO — Rising interest rates have hampered Japanese equities in recent weeks by lifting the companies' cost of capital — and the return demanded by investors […]

By deepak · September 1, 2026 · 1 min read

JAPEX, Mebuki Financial boost ROE targets, looking to buck trend

The Nikkei Stock Average has seen increased volatility since reaching a record high on June 25. (Photo by Jumpei Kinefuchi)

TOKYO — Rising interest rates have hampered Japanese equities in recent weeks by lifting the companies' cost of capital — and the return demanded by investors — exacerbating volatility caused by sharp fluctuations in artificial intelligence stocks.

Source: Read the original article on asia.nikkei.com