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BOJ's huge share purchases cause investor unease

Fund managers worry about distorted stock prices and weak market discipline

The Bank of Japan has sharply expanded its share buying campaign under Gov. Haruhiko Kuroda. (Photo by Taro Yokosawa)

TOKYO -- The Bank of Japan's stock buying program may be creating more problems than it solves, despite its goal of improving the nation's economy.

The BOJ has become a top 10 shareholder in 40% of Japanese listed companies according to calculations by Nikkei. But some fund managers have become alarmed by the resulting price distortions, diminished market discipline and other side effects.

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