Many portfolio managers are playing the “bullish Japanese equity, bearish Japanese yen currency” theme due to the election.
“The thought process here is that a regime change in the Japanese government may result in monetary policies that would lean towards this investment theme,” he said.
Abe, the incoming prime minister, has threatened to revise the law governing the Bank of Japan if it refuses to introduce a 2% inflation target at its January policy meeting, the Financial Times reports.
Abe’s comments “highlight his determination to push the BoJ to adopt a more aggressive monetary policy in an effort to end chronic deflation and boost economic growth,” the FT said.
WisdomTree Japan Hedged Equity Fund
