Bloomberg news is reporting today that:
Japanese shares are swinging by the most on record after a double boost by the nation?s central bank and pension fund sent the Topix index to a six-year high two weeks after it entered a correction.
The Topix rallied 7 percent in two days through yesterday, the steepest gain since March 2011, extending an advance since Oct. 17 to 16 percent following a three-week decline that erased 12 percent. Volatility is playing havoc with a momentum indicator known as the Relative Strength Index (TPX), causing it to go from bearish to bullish to bearish within 27 trading days, the fastest reversals on record, data compiled by Bloomberg show. The Topix closed 0.2 percent higher today at 1,371.76.
?Japan is a very unnerving market because it behaves like an uneducated brat,? said Mikio Kumada, Hong Kong-based global strategist at LGT Capital Partners, which manages about $50 billion. Kumada said he was overweight Japan before the BOJ and GPIF announcements. ?You don?t know what it?s going to do in the next moment and in many ways it?s unpredictable.?
For now, equities are surging after the Bank of Japan unexpectedly added to stimulus and the Government Pension Investment Fund said it would buy more local stocks. LGT Capital?s Kumada said he?s ignoring the swings and sticking with bullish positions.
To read more click here.