Goldman, Morgan Stanley say BOJ's latest move will boost Japanese stocks

<p>Bloomberg (gated) have the comments from Morgan Stanley and Goldman Sachs. </p><p>Morgan Stanley say:</p><ul><li>Opportunities in Japanese equities are “now even clearer” </li><li>the BOJ adjustment on Friday to allow the yield on 10-year bonds to trade as high as 1% has “successfully added policy flexibility without signaling a tightening cycle”</li><li>noted that sustained monetary tightening by the BOJ over next 12 months is unlikely and that further gains in banks may be limited</li></ul><p>Goldman’s:</p><ul><li>the “BOJ overhang” appears to have been removed</li><li>investors are likely to broaden their interests across sectors while selectively increasing weightings of large-cap stocks</li><li>“The combination of a stabilizing yen and improving corporate governance reform momentum could encourage more foreign investor inflows”</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.