Japan Stocks Retreat as ‘Not Much New’ From BOJ, Says Daiwa SBYoshiaki Nohara
Soichiro Monji, chief strategist at Tokyo-based Daiwa SB Investments Ltd., which manages the equivalent of about 6 trillion yen ($67 billion), speaks on the Bank of Japan’s policy decision today and its impact on the market.
The BOJ set a 2 percent inflation target and said it will shift to Federal Reserve-style open-ended asset purchases from January 2014. The Nikkei 225 Stock Average fell 0.7 percent at 2 p.m. in Tokyo after jumping as much as 1 percent after the announcement.
“The market got speculative buying when investors jumped on headlines without looking to the content of the announcement.
‘‘As they regained calmness, they realized there’s not much new. Open-ended asset purchases were unexpected by some folks including myself, but it’s the same in that they will keep buying government bonds.”
“The correction in the market will be big because shares were overbought and the yen was sold too much.”