Japan has emerged as a prime destination for global investors as the trade war triggers a reassessment of capital flows into the U.S., according to Pacific Investment Management.
The Asian nation is drawing inflows that seek to benefit from "once-in-a-generation structural reforms” in equities and rising rates in fixed income after decades of monetary stimulus, according to Ben Ferguson, co-head of Pimco in Japan. U.S. President Donald Trump’s policy announcements have been "disruptive” and the latest tariff announcements "highlight the need to, at least consider diversification,” he added.
"Japan historically has not been a focus as an investment opportunity for global investors, but this is one of the most dynamic moments that we’ve seen in this economy for the better part of the last three decades,” Ferguson, a former Goldman Sachs Group banker who joined Pimco in 2023, said in an interview. "Japan has moved toward the top of mind for global allocators.”
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