The Bank of Japan appears to be growing more comfortable with larger declines in the country¡¯s stock prices, a sign it may have begun in the share market what analysts describe as ¡°stealth tapering¡± of its massive monetary stimulus.
The BOJ refrained from buying stocks on two days this week when the Topix index was down more than 0.4 percent by midday, a departure from a previous pattern in which it bought exchange-traded funds (ETFs) on days when the index fell more than 0.2 percent.
The bank already has a precedent of stealth tapering in its bond buying and the similar moves in its stock market operations follow last month¡¯s announcement that it would make its asset purchases ¡°more flexible.¡±
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