Bank of Japan will nearly double ETF sales from January to about JPY860 billion a year (~$5.5bn), accelerating disposal of its large ETF holdings. Japanese stocks reacted muted, with the Nikkei 225 hit in the morning by a global tech sell-off before narrowing losses in the afternoon, suggesting markets can absorb the additional supply. Market strategists say the step looks hawkish on paper but is unlikely to materially disrupt prices given current average daily turnover; for names whose free flo

2026-10-30

Bank of Japan will nearly double ETF sales from January to about JPY860 billion a year (~$5.5bn), accelerating disposal of its large ETF holdings. Japanese stocks reacted muted, with the Nikkei 225 hit in the morning by a global tech sell-off before narrowing losses in the afternoon, suggesting markets can absorb the additional supply. Market strategists say the step looks hawkish on paper but is unlikely to materially disrupt prices given current average daily turnover; for names whose free float was reduced by BOJ holdings, sales could improve liquidity, indicating the bank assessed turnover and expects limited market distortion.