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BOJ steps up ETF purchases as shares slump

Traders speculate central bank buying when Topix index falls about 1%

As Tokyo shares fall back from their recent highs, the Bank of Japan has been significantly stepping up its purchases of domestic exchange-traded funds.

While the central bank is well known for its massive purchases of Japanese government bonds as a part of its monetary easing programme, it also buys ETFs-albeit in much smaller quantities-that track the Nikkei Stock Average and the broader Topix index.

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