Japanese money is poised to stay offshore as the central bank creeps toward tighter policy, according to the latest Bloomberg Markets Live Pulse survey.
Only about 40% of 273 respondents said the first interest-rate hike by the Bank of Japan since 2007 will prompt the nation¡¯s investors to sell foreign assets and repatriate the proceeds back home. That¡¯s good news for U.S. stocks and bonds.
A limited rise in the BOJ¡¯s policy rate may keep yield gaps between the Asian nation and other major economies too wide for Japanese investors to cross. That¡¯s likely to soothe concerns that a historic shift in policy will have a profound impact worldwide due to their massive $4.43 trillion holdings of foreign securities.
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