News from Japan overnight that Abe & Co may not necessarily need a law change to push through reforms of the GPIF probably went some way towards the gains in the Nikkei last night.
Abe want’s to shake up the huge pension fund and has already primed a change in how it allocates its investments. The deputy leader of Abe’s LDP party had previously stated that it would require a law change but that may not now be the case.
If that turns out to be they don’t need a law change then that potentially means the GPIF can start changing its portfolio structure with minimal fuss, and that is all stock bulls will need to run the Nikkei higher. It’s also expected that many other Japanese pension companies will follow suit when the GPIF changes it’s rules.
There’s still a long way to go and the GPIF is a big beast to turn but it’s coming together slowly.
Full story from BBG here (Thanks to JC for the heads up)
