After opening the day on a positive note, stock markets in India witnessed selling pressure and are presently trading marginally lower. Sectoral indices are trading in the red with stocks in the auto sector and telecom sector witnessing maximum selling pressure.

The BSE Sensex is trading down 120 points (down 0.4%) and the NSE Nifty is trading down 44 points (down 0.4%). The BSE Mid Cap index is trading down by 0.8%, while the BSE Small Cap index is trading down by 0.9%. The rupee is trading at 63.91 to the US dollar.

In the news from global financial markets, Japan’s government reappointed Bank of Japan (BOJ) Governor Haruhiko Kuroda for another term. The government nominated Kuroda to serve another five-year term when the current one ends in April.

The development comes as a sign that the BOJ will be in no rush to dial back its massive stimulus programme.

The reappointment also comes amid the ongoing volatility where Japanese and global markets have been rattled in recent weeks on expectations major central banks will ease their stimulus.

Note that Kuroda has said to maintain the BOJ’s ultra-easy policy. However, he has also refuted arguments that the stimulus programme needs to be expanded and has signaled the possibility of raising interest rates.

The BoJ has pushed back the timing to reach its price target six times since it deployed its massive stimulus programme in 2013. It now hopes that consumer inflation will achieve its 2% target by March 2020, as signs of strength in the economy and a tight job market boost wages giving households higher purchasing power, allowing firms to hike prices.

What remains are many issues that can hamper Japan’s economic growth going forward.

Also, the recent win of Japanese Prime Minister Shinzo Abe in elections also signals the continuation of Abenomics – the ultra-loose monetary and fiscal policies. These policies have influenced excessive money printing, too much debt, and too much government intervention in Japan.

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