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The yen trend has reversed, and Japanese stock investors are daring to go without hedging.
Since the Bank of Japan raised interest rates in July, there has been a more widespread change in people's views on the yen. This is a double-edged sword for the stock market.
After the release of the two big data, the Bank of Japan's expectations of interest rate hikes have increased.
After the release of Japan's labor cash income data and the US non-farm data, the Japan 225 index CME futures once again fell by more than 5%.
Whales are changing direction! The world's largest retirement fund may increase its holdings of Japanese stocks, triggering a chain reaction.
One of the world's largest retirement funds, the Government Pension Investment Fund (GPIF) of Japan, may increase its buying of domestic stocks and reduce investments in foreign bonds. This trend could have an impact on the global market. As long as GPIF raises its allocation target for Japanese stocks by 5 percentage points, it could translate into a net purchase of over 10 trillion yen (approximately 69 billion US dollars).
The Governor of the Bank of Japan reiterated that the economic environment remains accommodative and if the data meets expectations, interest rates will continue to be raised.
Kazuo Ueda stated that due to the significantly negative real interest rates, the economic environment will remain loose even after the interest rate hike in July.
Analysts warn of the risk of Japan raising interest rates: August "Black Monday" is just a preview of a bigger disaster.
①Arif Husain, the head of the fixed income department at PIMCO, warned that the 'Black Monday' in August was just the initial stage of this disaster, and there will be more market volatility in the future; ②He believes that the tightening of monetary policy by the Bank of Japan and its impact on global capital flows is not straightforward, and it will have a huge impact in the coming years.
Resona's subsidiary, AM-One, launched a fund focused on large cap stocks in Japan, raising $3.4 billion to bet on the recovery of the Japanese stock market.
Mizuho Financial Group's asset management company AM-One plans to launch an active fund focused on large-cap stocks in Japan before the end of the year.