Japanese Stock Market Braces for BOJ Action

TOKYO-- It's no secret that Masaru Hayami, the 75-year-old governor of Japan's central bank, is not a loved man. Even officials at the Bank of Japan have been known to criticize Hayami behind his back.

Although he is chastised by business leaders and government officials for virtually everything he does, Hayami has maintained his composure, repeating his mantra: Japan's economy has now stabilized, thus the country's 18-month-old, zero-interest rate policy must go.

On Friday, when the Bank of Japan policy board meets to discuss monetary policy, he'll have a chance to prove he is a man of his words. Market participants expect the bank will raise short-term interest rates to around 0.27% either on Friday or on Sept. 17, when the bank's subsequent meeting occurs. ...