Seeking Alpha

BOJ governor confident of reaching inflation target

  • The Bank of Japan expects its 2% inflation target "to be reached sometime in late fiscal year 2014 or early fiscal year 2015," Governor Haruhiko Kuroda says.
  • However, he acknowledges that the goal remained "very ambitious" given Japan's 15 years of deflation.
  • Unlike the ECB, Kuroda downplays the possibility of using negative interest rates, as the effect on the economy is unclear.
  • The Nikkei 225 closes +1.5%, while the USD-JPY is +0.5% to ¥101.77.
  • ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, SCJ, YCL, JSC, JGBL, JPP, ITF, DXJS, JGBT, JPNL, JPNS, FJP
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Comments (2)
  • Steve In Dallas
    , contributor
    Comments (4) | Send Message
     
    Re DXJ (ETF for large cap Japan equities, weighted for the big exporters)

     

    Does anyone think these Japan equities would be affected much by any US Fed tapering? This might be a question of how much the Japan equity prices are supported by US investors.
    25 Nov 2013, 07:58 PM Reply Like
  • Earning REady
    , contributor
    Comments (191) | Send Message
     
    Does anyone think these Japan equities would be affected much by any US Fed tapering?
    Interesting question considering Japan is the top foreign owner of U.S. assets and year end Japan repatriate flows.
    What is not supporting Japan equity prices is Japanese capital gains selling before tax is doubles from 10 to 20% in 2014
    New 2014 tax free accounts and Japan pensions interest in increasing equity exposure.
    25 Nov 2013, 11:52 PM Reply Like
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