BoJ Gov Haruhiko Kuroda says Japan economy continues to recover moderately as a trend. Effect of sales tax hike on economy likely to gradually ease. Japan banking system maintaining stability.
QQE exerting intended effects, will maintain QQE for as long as needed to achieve 2% inflation in stable manner. Will adjust policy as needed, looking at upside, downside risks to economy and prices. Some weakness seen in output.
On FX, BoJ Kuroda continues to affirm markets that sales tax hike impact is waning and that BoJ will adjust policy, if needed. Nikkei +2.77%, boosted by GPIF plans to up Japan stocks allocation to 25%. Also firmer US stocks. USD/JPY at 107.08-10, up on firmer Nikkei, calmer markets. Offers at 107.30-50, bids at 106.80-90 for now.
AUD/JPY up at 93.90-85, up from 93.50-55, Cross/JPY broadly firmer. AUD/JPY offers at 93.80-00, support at 93.00-20 for now, WL
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