However, a market source who is close on the matter said that the three pension funds’ managers were instructed to finish buying up shares before the end of June, which could potentially cause some short-term risk and a potential near-term correction in the market once the buying ends.
Prime Minister Shinzo abe has been pushing for public pension funds to shift away from conservative fixed-income securities and into riskier equities as a way to spur economic growth. Consequently, the GPIF is also expected to increase its allocation to stocks as well. Many market observers expect the GPIF to make a decision later this year.
iShares MSCI Japan ETF
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Max Chen contributed to this article.