Japanese stocks have firmed after sinking in early trading. An announcement that the state public pension fund would lift its weighting in stocks led to a spike in equities as the Nikkei 225 rose above its previous close. The index closed down 0.21 per cent for the day.
The fund, with over $1 trillion in assets, will now put 12 per cent of its portfolio in Japanese stocks, up from 11 per cent. Simultaneously, it will lower its Japanese government bonds weighting from 67 to 60 per cent.
The Nikkei ends the week down 6.5 per cent, the largest fall since the Fukushima disaster of March 2011.