Japan to Stem Bond Volatility as Aggressive Fiscal Policy Takes Hold (FXY) (EWJ)
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Japanese shares are indicated higher Wednesday as the Bank of Japan said it would take further steps to curb volatility in Japan's bond markets.
Reports have Japan's central bank boosting its view on the economy for the fifth-straight month, showing that Prime Minister Shinzo Abe's more aggressive fiscal policy is taking shape. Recent moves by Abe, including implementation of a massive quantitative easing program, have caused stocks in Japan to soar to 5.5-year highs while the yen has slipped to 4.5-year lows.
BoJ governor Haruhiko Kuroda played-down the effect of the bond moves, saying, "I don't think the recent rise in yields is having a big impact on the economy...We will continue to monitor market moves and respond with flexibility in the pace and maturities of bond purchases and in market operations."
Japan's current easing program calls for 50 trillion yen of purchases annually.
On watch are iShares MSCI Japan Index (NYSE: EWJ) and CurrencyShares Japanese Yen Trust (NYSE: FXY).
Reports have Japan's central bank boosting its view on the economy for the fifth-straight month, showing that Prime Minister Shinzo Abe's more aggressive fiscal policy is taking shape. Recent moves by Abe, including implementation of a massive quantitative easing program, have caused stocks in Japan to soar to 5.5-year highs while the yen has slipped to 4.5-year lows.
BoJ governor Haruhiko Kuroda played-down the effect of the bond moves, saying, "I don't think the recent rise in yields is having a big impact on the economy...We will continue to monitor market moves and respond with flexibility in the pace and maturities of bond purchases and in market operations."
Japan's current easing program calls for 50 trillion yen of purchases annually.
On watch are iShares MSCI Japan Index (NYSE: EWJ) and CurrencyShares Japanese Yen Trust (NYSE: FXY).
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