There was little doubt that Japanese Prime Minister Shinzo Abe's $116 billion sovereign bond buying scheme would be repurchasing that country's debt, but new developments suggest Mr. Abe may also be interested in purchasing some $558 billion in foreign securities, according to a recent article on Bloomberg citing a former Bank of Japan deputy governor.
Such a move would help the U.S. Federal Reserve contain the worst bond performance since the beginning of 2009 and could help lower U.S. interest rates and currency prices. The goal of such a move would be largely the same as China's - another large U.S. bond buyer: Making it cheaper for U.S. consumers to buy goods from the country's manufacturing sector.
The iShares MSCI Japan ETF (NYSE: EWJ) is trading up 1.59% over the past three days and roughly even since the beginning of the year. If Mr. Abe's plans prove successful, investors may want to consider purchasing the Japanese ETF to benefit from the upside, but concerns about the country's growing debt load could lead to some turbulence.