Japanese Banks Get a Lift as Asia Shines (MTU, SMFG, SUTNY)

Three Japanese banks have all had a healthy bump recently: Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU) at a $59.29 billion market cap; Sumitomo Mitsui Financial Grp, Inc.(ADR) (NYSE:SMFG) at a $39.59 billion market cap; and SUMITOMO MITSUI TR S/ADR (PINK:SUTNY) at a $12 billion market cap, and all three are benefitting from a vibrant Pacific Rim emergence. 

I saw a pie chart last week that sectioned off internet usage by territory and while the U.S. was in the mid to high teens; Asia dominated the chart over every other section presented; and that speaks to growth; what the U.S. and other developed nations are lacking.

Last week the WSJ reported that Yahoo Inc's board of directors has agreed to keep exploring a plan to split off the Internet Company's Asian assets in a complex deal valued at $17 billion.

The deal would have most of Yahoo's 40% slice in China's Alibaba Group transferred back to the Hangzhou based Internet Company and its entire stake in Yahoo Japan transferred to Softbank Corps, sources familiar with the matter told Reuters.

Japanese banks appear to be taking a leading hand in lending; borrowing U.S. dollars at next to nothing in interest rates and lending it out a point or two or three above and making a profit. That’s the usury formula that is pushing share valuations, or so I think…

All three of the stocks mentioned above are reasonably priced for an entry level buyer; MTU currently at $4.19 and enjoying a bounce back from Dec 19 at $4.03, and SMFG currently at $5.60 and enjoying a bounce back from $5.13 on Nov 23. And the least expensive, SUTNY, is currently trading in the $2.93 range and enjoying a bounce back from $2.80 on Dec 19.

If you’re looking at trends developing, that are far away from Euro-economics, I think all three of these banks are worth a look at; especially because they are so inexpensive to buy into. 

I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.