bank of japan

Hugh Hendry has backed Japanese equities to continue their stellar start to 2013, but is also boosting exposure to sovereign bonds on concerns Japan's recovery will have harmful effects elsewhere.

Japan's main equity market surged to a five-year high on the first day of trading after the country's Golden Week public holiday.

Japanese equity managers are betting on the domestic consumption theme following the Bank of Japan's aggressive move earlier this month to avert deflation and stimulate the flagging economy.

Bond managers have added to risk assets, while shorts on the yen hit a five-year high after the Bank of Japan (BoJ) announced radical monetary easing measures.

The Bank of Japan's announcement of aggressive growth stimulus measures on Thursday pushed up the flagging Nikkei and caused the yen to fall sharply against the US dollar.

Japanese shares have slumped in this morning's trading as equity markets struggle to consolidate gains seen in the first quarter of 2013.

WEALTH MANAGERS

The managers of the Ruffer investment trust are concerned further monetary easing may lead to another financial crisis on a par with 2007/8 as talk of yet more stimulus fuels 'risk-takers'.

Willem Verhagen, senior economist at ING Investment Management, investigates which ‘fundamentals' really matter for the euro.

China's stock market has rebounded slightly on Tuesday after its worst day for 18 months, as the country's parliament begins its annual session.