Japanese Finance Minister Katayama calls on GPIF to increase domestic asset allocation, causing the yen exchange rate to rise

Japanese Finance Minister Katayama called on GPIF and other pension funds to increase domestic asset allocation to benefit the public from Japan's economic growth. Affected by this, the Japanese yen strengthened, with the USD/JPY hitting a low of 161.28 during trading, a decrease of 0.67%; The Nikkei 225 index in Japan rose by a maximum of 2.4%; The 10-year and 20-year JGB yields both fell by about 10 basis points during trading. Daiwa Securities believes that the potential asset reallocation of GPIF has market significance. Lanze Securities pointed out that if GPIF, which manages approximately 300 trillion yen in assets, turns to Japanese financial assets, it will benefit domestic stocks. Cr é dit Agricole believes that Katayama tends towards structural measures rather than direct foreign exchange intervention. Sumitomo Mitsui DS Asset Management stated that reducing foreign asset exposure will alleviate the depreciation of the Japanese yen. Robeco expects this move to have a net positive impact on the Japanese yen and local assets.