Investors should buy inflation-linked debt and use swaps for protection against a potentially volatile drop in Japanese government bonds as the nation exits from deflation, Morgan Stanley MUFG Securities Co. said.
Henar Fuentes held out the white cardigan sweater as if she wanted nothing more in the world. It was on sale for 8.45 euros ($11.44) at a Madrid boutique just a few minutes’ walk from the Puerta del Sol.
Asian stocks fell after the yen strengthened overnight and valuations on the regional equities gauge climbed to a six-month high, with investors awaiting U.S. jobs data this week that may provide further evidence as to when the Federal Reserve will reduce stimulus.
Prime Minister Shinzo Abe’s success in reviving the world’s third-largest economy hinges on wages rising more than the Bank of Japan’s 2 percent inflation target, according to the investment strategist the premier has invoked as an authority on the country’s need for growth.
The Bank of Japan’s unprecedented monetary easing will fail in its goal of spurring 2 percent inflation, according to Takahiro Mitani, president of the fund that manages the world’s largest pool of pension savings.
Japan plans an 18.6 trillion yen ($181 billion) package to counter the impact of a sales-tax bump in April, as Prime Minister Shinzo Abe tries to sustain a recovery in the world’s third-biggest economy.
U.S. stocks fell a third day amid concern an improving economy will cause the Federal Reserve to reduce monetary stimulus, while 10-year Treasuries advanced as the central bank bought debt. The pound climbed to near a two- year high against the dollar and crude oil surged.
Pacific Investment Management Co.’s Bill Gross, manager of the world’s biggest bond fund, said the unprecedented cash added to the financial system by central banks is raising the risk of a slide in global asset prices.