After The Bank of Japan sparked a short-term meltdown in global bond markets earlier in the week when it shifted its curve control policy, Nikkei is reporting that Bank of Japan will discuss allocation change in next policy meeting. USDJPY and NKY Futs are down...
As Nikkei reports, BOJ may purchase more ETFs tied to TOPIX and less ETFs tied to Nikkei indices. The review is intended at curbing the excessive impact in pricing of member stocks.
As a reminder, Kuroda's central bank already owns a stunning 75% of all Japanese ETFs as the central bank keeps buying stocks under its ultraloose monetary policy.
Then a month ago, we reported that the Japanese central bank has also become a major shareholder in nearly 40% of listed companies. According to Nikkei calculations, the bank was one of the top 10 shareholders in 1,446 listed companies out of 3,735 at the end of March.
This means that just over the past year, when the BOJ was a major owner of 833 stocks, the BOJ's equity holdings have expanded by a staggering 70%. In addition, the Central Bank bank is now the top shareholder in Tokyo Dome, Sapporo Holdings, Unitika, Nippon Sheet Glass and Aeon.
Finally, the central banks now also owns record 41.8% of all Japanese bonds, an amount roughly equivalent to Japan's entire GDP.
So once again BoJ hits a wall with its market interference. As a reminder, BOJ is a Top 10 holder of over 40% of Japanese stocks.