Japan's Stocks Still Under Shadow of BOJ Unwinding Bond Holdings
The Bank of Japan is fine-tuning its pullback from the bond market but this mustn't obscure the fact that quantitative tightening is well underway and likely to cause instability in some stocks.
The potential impact of quantitative tightening may cast a shadow on the Nikkei 225 Stock Average's chances of climbing further after hitting four-month highs this week. The blue-chip index is skewed toward growth stocks such as Fast Retailing Co., which owns the Uniqlo casual clothing chain, and chip-related firms Advantest Corp. and Tokyo Electron Ltd.
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