Snap up more Japanese stocks, ratchet up shorts on government debt and keep buying the yen — these are some of the most popular calls from big-name money managers ahead of a Bank of Japan meeting that may end the world’s last experiment with negative interest rates.
The stakes are enormous heading into Tuesday’s BOJ decision. The nation’s blue-chip share gauge is towering near its record high, bond yields are climbing and the weak currency is boosting exporters. How liftoff of the policy rate will change that dynamic, and whether the BOJ will rein in other tools deployed across markets, are questions at the top of investors’ minds.
BlackRock and Man Group are among those seeing room for further gains in equities as economic vitality returns. RBC BlueBay Asset Management has made shorting 10-year government bonds its biggest macro bet, while Abrdn and Robeco are placing bullish yen wagers.
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