As we wrote earlier today, BOJ is now the biggest holder of Japanese equities according to Bloomberg (third biggest stock market in the world). Not overly surprising. Latest speeches by BOJ policy board members seem to be hungry for even more of the same..
Below excerpt from Hitoshi Suzuki on sustainable and flexible monetary easing:
"Given that it is expected to take more time to achieve the price stability target, due in part to the impact of COVID-19, I think it will become even more important for monetary easing measures to be sustainable and flexible. Given that monetary easing is expected to be further prolonged due in part to the impact of COVID-19, the Bank should look for additional ways to enhance the sustainability and flexibility of the policy measures so that it will not face difficulty in conducting ETF and J REIT purchases when an appropriate lowering of risk premia of asset prices is absolutely necessary." (Speech to local leaders in Fukushima, via webcast, 3 December)
That Nikkei break out we wrote about in mid October remains one off Kolanovic's autumn top calls according to us.