The Japan funds set to benefit from BoJ's 'imaginative' measures

Concerns Japan won't escape "economic doldrums"

Japan funds with overweight positions in financials, including the Man GLG Japan Core Alpha and Henderson Japan Opportunities funds, are set to benefit from the Bank of Japan's (BoJ) latest monetary policy moves, although some commentators warn the measures are unlikely to "snap the country out of its economic doldrums".

Under its 'Quantitative & Qualitative Easing (QQE) with yield curve control' programme, unveiled last week, the BoJ said it will initially cap 10-year bond yields at 0%. It will maintain its government bond buying at the current level of ¥80trn a year, but will buy fewer very long-term bonds. These measures should steepen the yield curve, and thereby make it easier for banks to earn profits by easing pressure on lenders' net interest margins. BoJ governor Haruhiko Kuroda (pictured) said the programme will remain in place until inflation has "overshot" its target of 2% "in a stable ...