The Bank of Japan appears to be growing more comfortable with larger declines in the country's stock prices, a sign it may have begun in the share market what analysts describe as "stealth tapering" of its massive monetary stimulus.
The BOJ refrained from buying stocks on two days this week when the Topix index was down more than 0.4 percent by midday, a departure from a previous pattern in which it bought exchange-traded funds (ETFs) on days when the index fell more than 0.2 percent.
The bank already has a precedent of stealth tapering in its bond buying and the similar moves in its stock market operations follow last month's announcement that it would make its asset purchases "more flexible."