Published at 14:22 (GMT) 16 Apr
BoJ Gov Haruhiko Kuroda says watching stock market moves carefully. Stock prices move on various short-term factors, but as a trend they reflect expectations about corporate revenues.
BoJ's QE is having positive impact on stock prices. Does not think it is fuelling speculative market moves. BoJ has no intention of monetising government debt, keeping JGB yields low just to ease financial burden and regardless of price moves.
Kuroda says too early to debate exit from QE now, but when time comes, will do so using most appropriate measures at the time.
On FX, BoJ Kuroda does not see bubble/ speculation in Nikkei. Nikkei +2.26%, supported further by MoF Aso comments on GPIF shift, possibly from June. Though could be weighed by lower China stocks, as China Q1 GDP of 7.4%, while better than 7.3% expected, is the slowest in 5-years since 2009 March. China stocks now -0.22%, Could see further falls on concerns over slowdown.
USD/JPY at 102.20-23, after rise to 102.26 level from NY close of 101.93. Offers 102.25-30, more at 102.50. Bids at 102 lows now. More at 101.80/50. Eye any rumours of GPIF, pension funds bids on dips. GBP/JPY firmer at 170.90-00, up from 170.50-55, on broadly firmer Cross/JPY on GPIF portfolio shift hopes. But could see selling interest on rallies on concerns over China, and Ukraine. Offers 171.30-50 for GBP/JPY, support at 170.00. WL
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