BOJ Decision ‘Strong Conviction’: Henderson’s Hall

(Corrects currency conversion in second paragraph.)

Jeremy Hall, Singapore-based director of Japanese equities at Henderson Global Investors Ltd., which oversees about $99 billion, comments on the market impact of the Bank of Japan (8301)’s efforts to end deflation.

BOJ Governor Haruhiko Kuroda began his campaign to end 15 years of deflation with a strengthened stimulus program that will see the central bank buy 7 trillion yen ($73 billion) of bonds a month. Policy makers set a 2 percent inflation target within two years.

On BOJ policy:

“It’s a pretty comprehensive spread of proposals. It’s a pretty strong statement of conviction from the Bank of Japan.

‘‘Obviously, the BOJ can’t do it alone. You also need to see a reciprocal action over the longer term on the structural side as well.”

On market valuation:

“I’m still quite constructive on the outlook for Japanese equities. Valuations are still pretty cheap. It is dependent on delivery of improving earnings.”

On inflation:

“The inflation target is aggressive. The fact that they’ve set the target with a time scale is very important.”

To contact the reporter on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net

To contact the editor responsible for this story: John McCluskey at j.mccluskey@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.