kuroda spoke at the national institute for policy studies and said the bank tried unconventional policiesrom the late 1990s but the economy failed to escape prolonged deflation. >> the monetary policies seem to be insufficient in terms of affecting people's expectations because of the bank's weak commitment. >> kuroda said the latest developments helped the central bank introduce the current policy. the policy covers both quan take tif and quaul take tif easing known as qqe. >> it was born as an result of an examination of both past experience and political development. >> he said combining theoretical and pragmatic approaches provides a broader perspective in policy planning. >>> next let's take a brief look at the market figures. >>> every morning investors turn their attention to asia. the tokyo market leads the way and markets around the world follow. from the decisions that could change the course of an economy. >> to the companies at the forefront of change. >> up to the minute market reports. >> analysis by specialists from around the world. >> get all of the latest business news a

kuroda and abe discussed economic measures overseas and trends in the markets. he told abe about the state of the japanese economy in light of the continuing recovery around the world. he says he called this a virtuous cycle. >> translator: the bank of japan is ready to make policy adjustments. we won't hesitate to take further monetary easing or other steps if we face conditions that make it contain the target. >> he said abe gave him no specific instructions about monetary policies. >>> managers of companies have felt disheartened about the increase in april and consumption tax. now they're feeling a bit better. they announced the results of the latest quarterly survey on business sentiment and asked managers at 16,000 companies for views on the economy. they took the percentage of respondents who expect business to improve and substracted those that expect things to get worse. the index ended up 11.1. many managers say the effects of a tax hike have eased. some see positives in the increase in demand for construction machinery. others were encouraged japanese

. >> and about the consumption tax, kuroda indicated it would be desirable to raise the rate to 10% from october next year as planned. he said if the tax hike does not occur, people in the financial markets would doubt the government's resolve and efforts to restore the country's fiscal health. >>> on to the markets now, some investors in asia took profits from recent gains, while others stayed on the sidelines. their focus is on upcoming major events. the european central bank is scheduled to announce its policy decision later on in the day. also we have got u.s. nonforeign payroll data coming out on friday. you can see most of the major dch mark benchmarks finished with declines. nikkei was down .33%, 15,676, that comes after reaching a seven month closing high for two days in a row. the yen's pause in weakening was not a positive for the market. in sydney, the s&p asx 200 index down more than .4%. 5,631. that is a second straight day of declines there. pulling the index lower today was resource stocks. they came under pressure due to falling iron ore prices. and in china, the shanghai

governor kuroda and the ecb president draghi have been given a green light the g-20 to keep pumping liquiditye finance ministers have said they are looking to support growth through structural reform. so we can potentially stave off some of the risks that too low for too long might pose. you have a relatively balanced statement. for liquidity policies in japan and europe. we have a tick for structural reform which will bring in growth, and thirdly, an allowance that we will see some normalization going forward and it is best to have your structural house in order before interest rates begin to rise to limit emerging-market volatility. for some oftick those things but another tick when it comes to europe. a stumbling block because of slow growth, right? >> absolutely. i think most g-20 countries, their main focus is making sure and global growth is stable if they can, accelerating. circumstances, all boats will rise. capital flows will reach emerging markets and risks, if they are emerging in advanced countries, particularly in financial markets, they will be staved off because monetary policy

that's what drag guy and kuroda are doing, fighting inflation and trying to get their economies competitivehrough an indirect currency manipulation, the net impacts is the's going to depreciate their currency while hopefully ours strengths, not just because of what we are doing in washington but because of what the economy in the u.s. is doing. >> the same time, our rates will eventually go up, which will contribute strength of the dollar here, the rate do go higher, plenty of people who fear what the market response will be at that time. what do you suggest people will do? >> a short-term haircut, haven't had one in two or three years, likely see some selloff, not at the end of the tape but october, people think the first rate hikes come, there's still a lot of margin in the system. people are borough at zero to invest in the market. some access out of the market, short-term rate goes up, the equity market can continue to really, two, three, four year, after the rate hike. don't get a market top until years in after the first fed hike. >> i wonder, and you know this better than anybody, yo