Nikkei welcomes report of higher GPIF investment

|By:, SA News Editor

Also helping to boost the Nikkei to a 2.4% bounce overnight following a 3% plunge on Friday was a report on the Government Pension Investment Fund temporarily removing a cap on domestic stock investment.

The action enables the massive GPIF to allocate more funds to Japanese stocks ahead of the upcoming official review at which it's likely to be allowed to raise its goal for equities to 20% of the portfolio from the current 12%. "[It's] a surprise for the market in that they are going to increase their stock holdings sooner," says a local equities strategist.

Previously: Nikkei posts largest daily percentage gain since mid-April

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