Japan’s Topix Three-Day Slump Hasn’t Prompted BOJ to Step In
- BOJ didn’t buy ETFs despite three-day drop in Japan stocks
- Kuroda says no ‘automatic rules’ for making purchases
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The Bank of Japan, which has helped to prop up the country’s equity market for over a decade, refrained from buying stock funds this week despite the Topix index posting its biggest three-day loss since June. That’s left some investors a little baffled.
When local shares were trading at multi-year highs earlier in 2021, the central bank scrapped an annual 6 trillion yen ($54.8 billion) target for purchases of exchange-traded funds, highlighting instead that it would prefer to buy “during times of heightened market instability.”