Half a year after Bank of Japan Governor Haruhiko Kuroda unleashed record monetary easing, economists see the bank failing to meet its inflation target, underscoring the case for stronger steps to revive the economy.
Yoshihiro Murai, governor of Miyagi, the prefecture that was the ground zero of the March 11 earthquake and tsunami, stands before a gathering in Tokyo of 300 representatives of Japan’s biggest companies and community organizations.
The strategist who predicted Japan’s 10-year bond yield would plunge to 0.5 percent now says it’s likely to reach a record 0.25 percent as a failure to meet economic targets may cost Prime Minister Shinzo Abe his job.
Bank of Japan Governor Haruhiko Kuroda would need to both buy more longer bonds and cut shorter notes should the authority decide to quickly bring the maturity of its holdings in line with the Federal Reserve.
Asian stocks rose this week after Chinese shares rallied amid signs the world’s second-largest economy is stabilizing, and as companies from Lenovo Group Ltd. to Tata Steel Ltd. posted profit that exceeded estimates.
Prime Minister Shinzo Abe faces rising pressure to expand tax relief for Japan’s companies after the longest slump in business investment since 2009, setting up a potential battle with the Finance Ministry.
Asian stocks outside Japan rose as Chinese property developers and resources companies climbed. Japanese shares fell after economic growth in the world’s third- largest economy slowed more than forecast.