BOJ's Kuroda: ETF purchases are not aimed at stabilizing the stock market

Bank of Japan's (BOJ) massive exchange-traded fund (ETF) purchases are not aimed at stabilizing the stock market, Governor Kuroda said on Tuesday while speaking in Parliament. 

With the ETF holdings reportedly totaling 29 trillion yen, the central bank has morphed into a hedge fund. Many are of the opinion that the BOJ should halt the ETF purchases, else the stock market’s ability to allocate capital efficiently will be ruined.