After Abe announcement, eyes turn to BOJ
Financial market players are eager to see whether the Bank of Japan will maintain its easy money policy following the news that Prime Minister Shinzo Abe is to resign. Abe's hand-picked central bank governor Kuroda Haruhiko assumed office in March 2013 and launched massive monetary-easing measures.
The BOJ has loosened its monetary policy in line with Abe's economic policies, dubbed Abenomics. The Japanese yen's value has declined under the policy, giving a boost to exporters. And the Nikkei stock average recovered to the 20,000-mark from under 10,000.
On Friday, after Abe's decision to resign was reported, shares were sold on the Tokyo Stock Exchange, causing the Nikkei to drop more than 600 points at one point.
Market players are now watching whether the BOJ will maintain its large-scale monetary-easing measures that helped to keep the yen low and stock prices high. The BOJ says the measures should be continued to support the economy, as the Japanese and global economies have been hit hard by the coronavirus pandemic.
The BOJ is scheduled to hold a two-day policy board meeting from September 16.
https://www3.nhk.or.jp/nhkworld/en/news/20200829_06/