Yesterday, the share price of the iShares MSCI Japan ETF (NYSEACRA:EWJ) closed the trading session at $12.48. It closed almost flat with respect to its previous close. The stock has been trading in a narrow range since November 19 after the Bank of Japan released its statement about the monetary stimulus and key interest rate.
The statement from BoJ dampened investor’s sentiment as they expected more from the central bank. Governor Haruhiko Kuroda reported that the bank plans to sustain its monetary policy stance unchanged. Further measures for a monetary stimulus will be planned if macroeconomic indicators reflect good numbers, as anticipated by the Bank of Japan.
Kuroda stated that despite the record-hitting financial numbers recorded by many Japanese firms, wage growth remains slow. Also, capital expenditure seems to be increasing at moderate speed. The Governor added that the recent Paris terror attack had a negligible impact on the country’s economy. Further action will be announced if any major geopolitical issue arises and poses more downside risk for the Japanese and global economies.
On November 19, the SPDR S&P 500 ETF closed down as the Federal Reserve’s expected rate hike draws closer. However, the noteworthy holdings of SPY closed positively. The SPDR Euro STOXX 50 ETF closed in green after the Eurozone ‘current account data’ was released on same day. It made a new high for the month of October as compared to the preceding month. In the commodity space, the yellow metal was the big winner, highlighted by the SPDR Gold Shares Exchange traded funds.
The interest rate
The financial sector including iShares MSCI Japan ETF (NYSEACRA:EWJ) always stands to be impacted after a monetary policy review. The central bank of Japan maintained its status quo on the major interest rate. In projection of aneminent future rate hike, the banking stocks are once again in focus and target of increased volatility.