Japan¡¯s finance minister called for the nation¡¯s massive pension funds to increase investments in domestic assets, boosting the yen from near four-decade lows and spurring a rally in bonds.
¡°One priority is to encourage households, as well as pension funds including the GPIF, to increase their investment in Japanese financial assets. We intend to pursue policies that support that objective,¡± Finance Minister Satsuki Katayama said Friday, referring to the Government Pension Investment Fund (GPIF).?It¡¯s one of the world¡¯s largest pensions with??293.6 trillion ($1.81 trillion) in assets.
The remarks in response to a question at a regular press briefing about government investment plans caught markets off guard, leading to a jump in the yen and a drop in bond yields. Both assets had been under considerable stress this week.
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