AMP Capital Investors, a unit of Australia's biggest pension-plan provider, said it may increase its Japanese investments following the Democratic Party of Japan's election win.
Japanese stocks currently account for about 3 percent of the $20 billion held by AMP's diversified mutual funds, said Nader Naeimi, a Sydney-based strategist. The DPJ ousted the Liberal Democratic Party on Sunday, promising to revive the economy by cutting waste, boosting child care spending and curbing bureaucratic excess.
"Japan still has challenges, but the change in leadership is positive for a market that's underperformed for many years," Naeimi said. "From an equity markets perspective, you needed some kind of trigger to get things moving. The hope and desire for a change is positive in itself."