Japan’s stock market likely to weather the BoJ’s slow withdrawal

22nd September 2025

While the Bank of Japan (BoJ) is a smaller player in equities than it is in bonds, the central bank acquired lots of shares via its ETF programme. So, it’s hardly surprising the BoJ’s announcement on Friday that it plans to unwind those holdings has caused some concern. Nonetheless, the selling is set to be extremely gradual. And we expect Japan’s stock market to weather it well through the rest of 2025 and 2026.

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