Bank of Japan Reaffirmed Monetary Stimulus Commitment

Hiruki Nakamura
04 Sep, 2014
New York City

Stocks in Japan eased and the yen pared gains after the Bank of Japan reaffirmed its pledge to expand monetary base at an annual pace between $600 billion and $700 billion. Expectations of GPIF overhaul increased after the appointment of reform minded Shiozaki as the new minister.

[R]4:30 PM Tokyo – Stocks in Japan eased and the yen pared gains after the Bank of Japan reaffirmed its pledge to expand monetary base at an annual pace between $600 billion and $700 billion. Expectations of GPIF overhaul increased after the appointment of reform minded Shiozaki as the new minister.[/R]

Stocks in Tokyo closed lower after broader Topix index reached eight-month high and the Bank of Japan held its policy targets.

The Bank of Japan held its pledge to increase the monetary base at an annual rate between 60 trillion yen to 70 trillion yen, according to a statement released today by the central bank today.

Prime Minister Shinzo Abe appointed new cabinet ministers as widely expected. Abe appointed Yasuhisa Shiozaki as health and labor minister and the reform minded minister is expected to overhaul the $1.2 trillion Government Pension Investment Fund.

The Nikkei 225 Stock Average slipped 52.17 or 0.3% to 15,676.18 and the broader Topix index slid 5.13 to 1,296.39.

The yen declined to close at 104.89 against one U.S. dollar.

Stocks in Review

Japan Retail Fund Investment Corporation closed unchanged at 183,400 yen and the real estate developer agreed to acquire and lease two properties of Tokyo and one each of Okinawa, Aichi and Osaka that valued 46.74 billion yen on October 1.

NHK Spring Co., Ltd dropped 2.3% to 996 yen after the automobile parts maker plans to sell five-year convertible bonds worth $100 million in international markets.

Tohoku Electric Power Co., Inc fell 0.6% to 1,193 yen after the electric power supplier plans to start trading coal swaps for the first time to manage price volatility risk and preparing to liberalize the electricity market.