Japanese Shares Fall for Second Session

Asian bank stocks fell sharply, led by Japanese lenders, after Bank of America warned of weaker trading and investment banking activity. Sumitomo Mitsui Financial, Nomura, and others declined. Higher yields and softer revenue trends contributed to the selloff.

Stablecoins, with a total supply of $303B, rely increasingly on traditional banks for growth. Regulation in the U.S., Europe, and Britain accelerates this trend, requiring stablecoin issuers to integrate with regulated banking systems. Major banks are forming consortia to issue stablecoins, while Circle's stock dropped 6% on this news. Projections suggest stablecoin market could reach $1.9T-$4T by 2030, but risks like liquidity strains remain.

Mitsubishi UFJ Financial Group (MUFG) reported higher Q1 results under Japanese GAAP for the three months ended June 30, 2026. Ordinary income rose 20.1% to 3,907,543 million yen, ordinary profits increased 57.8% to 1,117,934 million yen, and profit attributable to owners climbed 48.2% to 809,427 million yen. ROE (JPX basis) rose to 14.40%. MUFG kept its FY ending March 31, 2027 target of 2,700.0 billion yen and forecast total common dividends of 96.00 yen per share.

Mitsubishi UFJ Financial Group reported quarterly net profit up 48% to 809.43 billion yen ($5.14 billion) for the three months ended June, beating an S&P Global Market Intelligence estimate of 644.01 billion yen. The bank cited higher domestic lending rates linked to Bank of Japan policy tightening. It reiterated a FY ending March 2027 net profit target of 2.700 trillion yen.

IDF and Oaktree said they will invest $1.7bn to deploy Bloom Energy fuel-cell systems for Nebius’ AI cloud infrastructure, providing behind-the-meter power to meet rising computing demand. IDF is principal developer and Oaktree takes a minority equity stake. Morgan Stanley provides tax equity and placement, MUFG provides senior debt, according to the firms.

Dubai Aerospace Enterprise (DAE) and Neuberger Specialty Finance plan to launch Mustang Aerospace, an aircraft leasing co-investment vehicle targeting about $6bn in medium-term investments across multiple vehicles. The fund will buy a diversified aircraft fleet using managed funds from both parties and deploy capital gradually. Mustang secured committed warehouse financing from several banks. DAE has ~700 aircraft valued at $25bn (end-March).