BOJ Set to Raise Rates to 1.25% as Inflation Risks Build 
Global Central Banks Brace for More Rate Hikes as Inflation Risks Rise 
Gold Prices Steady as Oil Disruptions Boost Fed Rate Hike Bets 
Gulf Ministers to Meet Iran in Oman Over Hormuz Shipping Deal 
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Asian Tech Stocks Slide as AI Concerns and Rising Bond Yields Hit Chipmakers 
Japan Producer Inflation Eases to 7.6% in August 
Central Banks Could Buy 20,000 Tonnes of Gold: BofA 
Gold Prices Fall as Hot U.S. Inflation Boosts Fed Rate Hike Bets 
Asian Currencies Subdued as Yen Weakens Ahead of Fed, BOJ Decisions 
Dollar Rises as Fed Hike Bets Weigh on Asian Currencies 
China Industrial Output Beats Forecasts as Exports Support Growth 
Goldman Sachs Forecasts Fed Rate Hike as Inflation Risks Rise 
Asian Stocks Steady as AI Shares Rebound Ahead of Fed Decision 
Finland Raises 2026 Growth Forecast as Exports and Investment Surge 
US Treasury Yields Near 5% as Oil Fuels Inflation Fears 
White House Weighs Refined Copper Tariffs as Cost Concerns Grow 
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Asian bank stocks fell sharply on Tuesday, with Japanese lenders leading losses after Bank of America warned that weaker trading and investment banking activity could pressure third-quarter revenue.
Sumitomo Mitsui Financial dropped 2.7%, Nomura declined 2.6%, Mizuho Financial lost 2.4%, and Mitsubishi UFJ Financial fell 1.8%. Resona Holdings recorded a steeper 3.5% decline.
The banking selloff spread across Asia. China Merchants Bank fell 2.5%, China Construction Bank dropped 2.3%, Bank of China declined 2%, and HSBC weakened. Singapore lenders OCBC and UOB fell around 2%, while Australian banks National Australia Bank, Commonwealth Bank and ANZ also moved lower.
Asian financial stocks followed Wall Street banks lower after Bank of America CEO Brian Moynihan warned about softer revenue trends. Bank of America shares plunged 5.1% on Monday, while Goldman Sachs and Morgan Stanley also suffered heavy losses. The KBW Bank Index declined about 1.9%.
Moynihan said Bank of America's third-quarter sales and trading revenue was expected to remain roughly unchanged from a year earlier. Investment banking fees could decline at least 10% to between $1.6 billion and $1.8 billion, compared with $2 billion a year ago.
Higher interest rates could further weaken demand for financing, adding another challenge for the banking sector.
Japanese banks faced additional pressure from rapidly rising government bond yields. Japan's 10-year bond yield climbed above 3% as investors increasingly priced in a Bank of Japan rate hike to 1.25% at this week's policy meeting.
Although higher interest rates can improve banks' net interest income over the longer term, a rapid increase in bond yields can reduce the value of bond portfolios and weigh on financing and investment activity.
The broader market also showed signs of sector rotation. While financial stocks struggled following Bank of America's outlook, several U.S. software stocks strengthened as investors reassessed concerns surrounding artificial intelligence disruption. Adobe and Salesforce advanced, while cybersecurity firm CrowdStrike climbed to a record high.
