Tag Archives: Bank of Japan asset purchases

Foreign outflows from Japanese equity markets are being more than offset by the BoJ’s purchases of ETFs.Japanese equities received net inflows in March. Nevertheless, foreigners were net sellers – with the highest monthly net foreign redemptions in the past 18 months. Thanks to the Bank of Japan’s (BoJ) purchases of Exchange Traded Funds (ETFs), there have still been net inflows into Japanese equities despite the strong foreign outflows.The BoJ is buying ETFs according to plan, currently...

Through its asset purchase programme, the Bank of Japan owns 4% of the TOPIX’s market capitalisation and two-thirds of Japanese equity ETFs.Although it has made no major monetary policy announcement since September 2016, the Bank of Japan (BoJ) has actually been tapering its government bond purchases ever since. As a result, equity ETF purchases have steadily increased over the past year from 3% of total BoJ purchases to 9% recently, above the initial implicit target of 7%.The central bank...