Japan’s $1.75 trillion state pension fund may step up purchases of domestic stocks and scale back on foreign bonds in a reallocation of assets that would ripple through global markets, a Bloomberg survey shows.
Almost half of the 21 analysts polled said the Government Pension Investment Fund (GPIF) will boost its allocation target for Japanese equities above the current 25% as part of a portfolio revamp from April. They said an increase in foreign bonds is highly unlikely, as it would involve yen sales that may weaken the currency.
Even a modest increase in purchases of Japanese stocks would bolster sentiment in a market that’s still recovering from its worst rout in decades after the Bank of Japan raised interest rates at the end of July. A gain of just 5 percentage points in the equity target may translate into net buying of more than ¥10 trillion ($69 billion).
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.