Japan’s much-anticipated exit from its ultraeasy monetary policy is likely to have the unusual effect of making the equity market the biggest beneficiary from interest-rate hikes.
That’s the prediction of Yue Bamba, head of Japan active investments at the world’s biggest money manager, BlackRock, who flagged that big underweight positions point to further fund flows into the market.
His comments come as bets that the Bank of Japan (BOJ) shifting policy will reshape the investment landscape in Japan, suggesting that equities are poised for more gains after the biggest rally since 2013 last year. A decade after late Prime Minister Shinzo Abe introduced reflationary measures, dubbed Abenomics, Japan seems to be in its final stage of declaring victory over decades of deflation.