Shane Oliver, Sydney-based head of strategy at AMP Capital Investors Ltd., which has about $126 billion under management, comments on the outlook for Bank of Japan policy following today’s decision to maintain asset purchases. He also discussed his forecast for Japanese equities, speaking in a telephone interview.
“Once the new governor takes over we’ll see an acceleration of the pace of monetary easing. Valuations remain reasonable and monetary policy will remain accommodative.
‘‘The significance of Japan joining the fray is that it adds to global monetary easing, with another major central bank putting cash into the system and that puts pressure on others others in Asia.
‘‘The yen is probably on its way to 105 against the dollar and this year would see the Japanese share market rise 30 or 40 percent in U.S. dollar terms. To get that degree of outperformance probably will require the yen to fall to 105.’’