AUTOREFRESH 
Asset sell-off to affect Japanese financial markets
By Sean Lee || September 5, 2010 at 23:14 GMT
|| 2 comments || Add comment
Thanks to Chris for the link to this morning’s Australian newspaper and it’s story on the expected sell-off of assets by Japan’s huge Government pension investment fund.
Obviously the effect of these sell-offs will depend to a large degree on what assets are sold and whether they are on-shore or off-shore, but one would have to think that uncertainty and imbalance are the most obvious short term effects, neither of which will be good for the Nikkei. A lower Nikkei may initially encourage selling of USD/JPY and the JPY crosses but ultimately one would expect fundamentals to finally start playing a role and for the JPY to weaken.
A good article in FT on Yen intervention and its likely impact. http://ftalphaville.ft.com/blog/2010/09/03/333786/the-politics-of-yen-intervention/
In fact it appears that large Japanese funds have already started buying non Japanese sovereign bonds in anticipation of a weaker yen. This is one more point in favour of the thesis that USDJPY is forming a bottom near current lows of 83.5 – 84.0.
[...] Asset sell-off to affect Japanese financial markets [...]