BOJ Removes Japan Stocks Overhang With Slow ETFs Sell-Down

A large overhang that threatened the Japanese equity market is being removed with the central bank laying out a century-long plan to offload its massive holdings of exchange-traded funds.

While benchmark stock gauges fell Friday in a knee-jerk reaction when the Bank of Japan said it would be selling its ¥75 trillion ($507 billion) stockpile, traders quickly pared much of the decline as focus turned to the very gradual nature of the program. The BOJ intends to reduce its holdings by about ¥620 billion by market value per year.