Japan's banking sector loses $85 billion in market value

Shares of Mitsubishi UFJ Financial Group and Mizuho Financial Group posted their biggest ever declines on Monday as the stock market plunge sent Japanese bank stocks tumbling. At the close of trading today, shares of Mitsubishi UFJ Financial Group, Japan's largest bank, fell 18%, Mizuho Bank fell 20%, and Sumitomo Mitsui Financial Group fell nearly 16%, also a record drop. The three companies have lost about 12 trillion yen ($85 billion) in market value over the past two trading days. The plunge in Japanese bank stocks highlights how sensitive they are to fluctuations in the interest rate outlook. The sharp drop in bank stocks highlights the challenges faced by the Bank of Japan in trying to "normalize" monetary policy. (Jinshi)