Stock Price Boost from Bank of Japan’s Record ETF Buying Fizzles
- Topix lost 1.4% after a 1% gain Monday when BOJ bought ETFs
- What monetary policies can do is side support: Mitsubishi UFJ
Pedestrians cross an intersection in the Shibuya district of Tokyo.
Photographer: Toru Hanai/BloombergThis article is for subscribers only.
The Bank of Japan’s surprise purchase of a record volume of exchange-traded funds turbocharged the nation’s shares on Monday, but the effect vanished on Tuesday with investors talking down odds of a lasting impact.
The Topix lost 1.4% in Tokyo following a 1% gain Monday, its biggest advance in almost a month. The benchmark measure added 2% at one point on Monday after the BOJ stepped into the market to buy 101.4 billion yen ($940 million) of ETFs, the most since it began to step into the stock fund market in 2010.