Reports that Japan's public pension fund will shift towards equity, sees yen weaken and Nikkei futures up

Reuters reports that Japan's public pension fund - the Government Pension Investment Fund (GPIF) - could change its portfolio strategy so that it is not forced to buy bonds and sell stocks.

The main idea under consideration would be for the pension fund to change the way it assesses the potential risk and return on assets to allow it more flexibility, the sources said. GPIF would keep its model portfolio, which sets a broad framework on how much money is allocated to different assets, unchanged.


Bonds have been falling in value while stocks have been appreciating. Nikkei futures are up as much as 400 points (following losses of 737 points in the last session) and the yen is down against the dollar.