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Market Scramble: BOJ's ETF buys raise overheating fears

TOKYO -- The Bank of Japan's growing purchases of exchange-traded funds are causing concern about price distortion among fundamentals-focused investors.

One market indicator is showing how stock price formation has been skewed. The ratio of the Nikkei Stock Average to the Tokyo Stock Exchange's broader Topix index rose to 12.78 Friday, the highest since back during the dot-com bubble in March 1999. The Nikkei average gained 184 points, or 1.1%, to close at 16,919 in a surprisingly active session for mid-August.

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