Japan’s 121 trillion yen ($1.21 trillion) pension fund needs more independence from bureaucrats and should put some of the world’s biggest retirement savings pool into private equity and commodities, an expert panel said.
Japanese stocks are poised to surpass this year’s high set in May as a stronger U.S. economy weakens the yen and Prime Minister Shinzo Abe’s reflation policy leads to wage increases, according to BNP Paribas Investment Partners SA and SMBC Nikko Securities Inc.
Japanese shares jumped, with the Nikkei 225 Stock Average closing at its highest since May, as the yen weakened after Finance Minister Taro Aso said the nation must retain the option to intervene in currency markets.
BNP Paribas SA ’s fund of small Japanese companies increased assets eightfold last month after an investment by a Swedish life-insurance company, lured by its bet that smaller stocks will benefit from an earnings recovery.
Japanese stocks advanced, erasing earlier declines, as exporters rebounded after the yen weakened. Shares earlier followed U.S. stocks lower amid continued concern about the potential for tighter monetary conditions in the world’s largest economy.
Asian stocks outside Japan fell, with a regional gauge heading for its lowest close since September, on concern the Federal Reserve will reduce stimulus and China’s economic slowdown may deepen amid a cash crunch.
Japan’s Topix Index entered a bear market, with stocks plunging to a level not seen since 1983 as Europe’s debt crisis spurs a global flight from risk assets, driving up the yen and threatening exports.
Toyota Motor Corp. , the world’s largest carmaker, forecast profit to rise 48 percent this fiscal year as it recovers from record North American recalls and expands sales in China and other Asian markets.