Bank of Japan may have a new pattern when buying stocks

The regulator has said it may buy up to $112b (JPY12t) in ETFs a year.

The Bank of Japan (BOJ) may have adopted a new standard in deciding when to support stocks, reports Bloomberg, according to their correspondence with Seiichi Suzuki, a market analyst at Tokai Tokyo Research Institute Co.

Whilst market consensus has it that the BOJ purchases ETFs when the Topix index falls at least 0.5% during the morning session, recent buying patterns have changed, noted Suzuki.

“The bar for ETF purchases has been lowered to a drop of 0.25% on a day when the stock gauge has fallen for a second consecutive session,” Suzuki said. “This is to prevent any steep declines in stock prices” regardless of the pace of their ETF purchases, he added.

The central bank has said it may buy up to $112b (JPY12t) in ETFs a year, though in principle its target is $56b (JPY6t). The Bank of Japan declined to comment.

Here’s more from Bloomberg.

Also Read

Singapore bankers to see up to 30% pay rise in 2025

Hong Kong bankers to see 15% to 20% salary hikes next year

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit