While some market strategists suggested the yen could extend gains and weigh on stocks should the attack hasten a rethink of central bank policy, economists largely see the likely impact as limited. Abe is known as a key supporter of BOJ Governor Haruhiko Kuroda’s policy of maintaining rock-bottom interest rates to support economic growth, recently describing the central bank as a subsidiary of the government.
The shooting of former Japanese Prime Minister Shinzo Abe is spurring market debate over a potential loss of support for the Bank of Japan’s super-easy monetary policy after an initial rush to haven assets Friday.
The yen climbed alongside Treasuries, with the currency rising as much as 0.5% against the dollar as details filtered through about the shocking attack in the western city of Nara during campaigning for Sunday’s national election.
