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The Bank of Japan’s controversial march to the top of shareholder rankings in the world’s third-largest equity market is picking up pace. Already a top-five owner of 81 companies in Japan’s Nikkei 225 Stock Average, the BOJ is on course to become the No. 1 shareholder in 55 of those firms by the end of next year, according to estimates compiled by Bloomberg from the central bank’s exchange-traded fund holdings. BOJ Governor Haruhiko Kuroda almost doubled his annual ETF buying target last month, adding to an unprecedented campaign to revitalize Japan’s stagnant economy.
The Bank of Japan's Unstoppable Rise to Shareholder No. 1 - Bloomberg
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Japan's core consumer prices fell for a fifth straight month and marked the biggest annual drop in more than three years in July, government data showed on Friday, keeping the central bank under pressure to expand an already massive stimulus program. The gloomy data reinforces a dominant market view that premier Shinzo Abe's stimulus programs have failed to dislodge the deflationary mindset prevailing among businesses and consumers.
Japan July core CPI falls more than expected on-year
The adoption of negative interest rates — initially launched in Europe in 2014 and now embraced in Japan — represents a major turning point for central banking. Previously, emphasis had been placed on boosting aggregate demand — primarily by lowering the cost of borrowing, but also by spurring wealth effects from appreciating financial assets.
Negative interest rates set stage for next crisis, Stephen Roach says - MarketWatch
Negative interest rates have helped boost demand and supported stable prices by supplementing conventional monetary stimulus, senior experts at the International Monetary Fund said in a paper. The Bank of Japan became the latest central bank to start charging commercial banks for the privilege of parking their excess funds earlier this year. The bank joined counterparts in the euro zone and Switzerland in slashing interest rates below zero in an effort to shake up its sclerotic economy and push up feeble inflation.
IMF: Here's why negative rates can have a positive impact
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Japanese households and companies continue to hold onto cash rather than spending or investing, highlighting the ongoing challenge to revitalize the economy. Households held 920 trillion yen ($9.1 trillion) of their assets in cash or deposits at the end of the quarter through June, the second-highest level on record, a report by the Bank of Japan showed Monday. Corporate cash and deposits stood at 242 trillion yen, an all-time high after a revision of data for previous periods, according to the report.
Japanese Companies and Households Continue to Pile Up Cash - Bloomberg
The Bank of Japan on Thursday offered to buy an unlimited amount of Japanese government bonds at fixed rates for the first time since the introduction of a new policy framework — a sign of its concerns over recent rises in yields. The move is the first clear sign from the central bank that it intends to take action to keep a lid on rising yields, and took market participants by surprise.
Bank of Japan unveils surprise bond-buying plan - MarketWatch
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We are positive on the Japanese economy, expecting 1.8% GDP growth. After adjusting for a slight decrease in the population, per capita GDP growth should continue to exceed that in the US, although once again, GDP measurement is fraught with difficulty. Yes, we expect a 16% increase in TOPIX due to strongly rebounding earnings cause by a normalized yen vs. a strong yen in 2016, but mostly due to stronger global growth and continued improvement in Japan’s corporate governance.
One of Wall Street's top Japan experts on the BOJ, Abenomics, and the future of the yen | 01/20/17 | Markets Insider
Vail: Abenomics has long been a success, especially for stock investors, but also for the common man, as Japan is growing in a healthy manner (no matter what the macro-economic statistics, which are very difficult to measure, say), greatly due to his determination to hire (and continually support) a central bank governor who promoted an expansive monetary supply. There have been many regulatory reforms or improvements and although most were non-grandiose, in aggregate they have contributed to Japan’s growth.
One of Wall Street's top Japan experts on the BOJ, Abenomics, and the future of the yen | 01/20/17 | Markets Insider
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