Goldman, Morgan Stanley say BOJ’s latest move will boost Japanese stocks

Bloomberg (gated) have the comments from Morgan Stanley and Goldman Sachs.

Morgan Stanley say:

  • Opportunities in Japanese equities are “now even clearer”
  • the BOJ adjustment on Friday to allow the yield on 10-year bonds to trade as high as 1% has “successfully added policy flexibility without signaling a tightening cycle”
  • noted that sustained monetary tightening by the BOJ over next 12 months is unlikely and that further gains in banks may be limited

Goldman’s:

  • the “BOJ overhang” appears to have been removed
  • investors are likely to broaden their interests across sectors while selectively increasing weightings of large-cap stocks
  • “The combination of a stabilizing yen and improving corporate governance reform momentum could encourage more foreign investor inflows”

This article was written by Eamonn Sheridan at www.forexlive.com. Source