Fund managers remain bullish on Japan’s corporate earnings growth as stagnant inflation seems highly unlikely to spur its central bank into unwinding quantitative easing for at least another two years.
Net inflows into Japanese equity funds by European investors have picked up recently, as the current macro environment looks conducive to Japanese equities. Asset managers are also becoming increasingly bullish on the asset class.
With news overnight that the Bank of Japan has unveiled a new form of stimulus, professional investors and economists reacted with mixed enthusiasm.
Super Thursday has come and gone, but Wednesday could shape up to be somewhat of a ‘Wild Wednesday’ on financial markets, should the plethora of central bank announcements on the day not go according to plan.
Janet Yellen’s Economic Club of New York speech provided a timely reminder that the Fed continues to dictate markets. This contrasts with the waning credibility of her counterparts in Europe and Japan.
Equities markets around the world climbed sharply on news of Japan’s surprise decision to cut interest rates into negative territory.