Abe’s victory and Japanese investors side-effects
This interesting Nikkei article, summing up several strategists’ view on equity investments, could be the boon for Japanese stock markets.
As we learned this week Nippon Life, Sumitomo Life (and suite for sure) and last week JPIF’s announced to beef up the risky assets, foreign bonds, stock investments.
At the same time Japanese foreign holdings stand at record highs and not abating, pushed of course by BOJ’s YCC but also testifying of Japan’s money put to work.
Same article interestingly points to the addition of about 40 trln JPY(350 Bn $) over the past 5 years in foreign money into Japanese assets.
Abe’s re-election and attached continuously lose fiscal and monetary policies underpinning the financials, could spark a gold rush into Japanese equity markets at the end of this year,
at the same time adding another victory to Abe’s palmares, as that’s what he’s after, a positive investment spiral.
If this happens in a risk positive environment, it should, per correlation as hedges are put in place, send USDJPY and JPY crosses quite bit higher. Certainly worth keeping a close eye on.
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