Some investors are cheering the Bank of Japan¡¯s withdrawal from the stock market, even as they brace for more volatility.
The central bank didn¡¯t buy any exchange-traded funds for an entire month of May, the first time since Gov. Haruhiko Kuroda kicked off his easing campaign in 2013. That¡¯s prompting some in the market to believe the BOJ is getting serious in pulling back from such purchases.
Many market watchers are praising the move, saying that the BOJ¡¯s outsized presence ¡ª it is the largest holder of Japan equities ¡ª has undermined the price discovery process and also become a hindrance to better corporate governance.
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