The only major Asian markets trading today ‘Japanese stock exchange’ and ‘Jakarta Composite’ ended in green on Friday, on optimism about the Japanese economy recovery. Bank of Japan Governor Haruhiko Kuroda stated that aggressive via massive purchases of Japanese government bonds is not causing any problems in the market. Kuroda added that he doesn’t see any problems about implementing the quantitative and qualitative easing. By absorbing nearly all of the new government debt in the secondary market every month, the BoJ has kept long-term interest rates at record lows. The BoJ launched aggressive easing in April 2013 aimed at overcoming years of deflation and anchoring 2% inflation in about two years from then.
Separately, Japanese Economics Minister Akira Amari stated that it will take more time for Japan’s economy to escape from chronic trade deficits because of energy imports. Amari stated that there are finally signs that a weakening in the yen is benefiting exports, a phenomenon often known as the J-curve. Japan’s index of leading economic indicators rose to a seasonally adjusted 105.6, from 105.2 in the preceding month.
Nikkei 225 increased 67.51 points or 0.37% to 18,332.30 and Jakarta Composite increased 9.66 points or 0.18% to 5,400.11.