Tokyo fails to inspire confidence in risk assets

Moves in the past week by the Bank of Japan (BoJ) and Prime Minister Shinzo Abe’s government aimed at re-invigorating the country’s economy have failed to inspire investor confidence. They also appear to have also foreshadowed problems looming for other economies. Govinda Finn, senior Japan analyst at Standard Life Investments, was blunt in his assessment: “Japan’s reflation experiment is on the rocks. If the credibility of the government’s macro-policy goals continues to seep awa…