“Speed is of the utmost importance,” Kuroda said during a parliamentary hearing, the New York Times reports. “I intend to pursue bold monetary easing, both in scale and in quality.”
Kuroda’s confirmation “will only provide more ammunition to Prime Minister Shinzo Abe’s inflationary goals,” reports Dan Carroll at the Motley Fool.
“Observers expect Kuroda to go along with Shinzo Abe’s dovish monetary plans that have so far sent the yen into a nosedive against the dollar this year,” Carroll wrote. “Kuroda and his new team will have their first policy meeting at Japan’s central bank next month, and all eyes will be watching to see if any further easing comes as a result.”
“We also believe that we are still in the beginning stages of a potentially big move, with ample room for the yen to further depreciate and equities to continue their gains,” Schwartz at WisdomTree said in a press release. “For some context, the Nikkei 225, a broad Japanese stock index, has to appreciate more than 50% from its current 12,000 levels to reach its early 2007 levels of 18,000, while the Dow Jones Industrial Average reached a new high and S&P 500 is almost past its all-time high. This shows Japanese equities have a significant way to go in order to get back above pre-financial crisis levels.”
WisdomTree Japan Hedged Equity Fund
