bank of japan

Asian stocks have rallied for the third day in a row, led by Japanese shares, as regional indices touch highs last seen in 2011.

A US equity fund targeting the Japanese retail market has seen one of the largest subscriptions ever as domestic investors pile into overseas stocks on fears over the yen.

Hedge fund veteran George Soros has made $1bn betting against the yen since November, profiting from the Bank of Japan (BoJ)'s moves to weaken its currency.

Attempts by the world's seven major economies to calm the growing tensions over exchange rates triggered by the weakening yen have failed, as currency markets suffered a second day of volatility.

Schroders is preparing to add a sterling-hedged share class to its £797m Tokyo fund as investors become more concerned about downside risk to the yen.

Legg Mason plans to unveil a sterling-hedged share class for its top-performing Japan Equity fund to protect investors from currency volatility, as the Bank of Japan (BoJ) unveils a fresh stimulus package.

The Bank of Japan(BoJ) has taken more aggressive measures to kick-start growth than analysts expected by doubling its inflation target from 1% to 2% and pledging to pump billions of yen into the economy.

Japanese markets have jumped almost 5% in the first three weeks of the year - almost unheard of for the region - in anticipation of a reversal of the decade and half long slump into deflation.

ASSET ALLOCATION

Economist and renowned commentator on Japan, Arcus Investment's Peter Tasker, said in the last 20 years the country has been through the most severe and prolonged bear market ever seen.