Natixis Increases Japan Stock Allocation, Reduces US Equity Exposure
Natixis Investment Managers has increased its allocation to Japanese equities while reducing exposure to U.S. stocks, citing stronger economic growth and supportive monetary policies in Japan compared to the United States. The firm's strategists believe that rising inflation is boosting corporate revenues and earnings in Japan, making it a more attractive market for equity investment. The shift comes as Japan’s 10-year government bond yield approached 3%, marking a significant milestone after years of historically low rates. Natixis has also reduced its exposure to global bond markets due to negative returns on longer-dated maturities across major economies, including the U.S., Europe, and Japan. The firm is confident in Japanese equities' performance over the next two years based on strong economic indicators such as wage growth and a more favorable policy environment. The Bank of Japan’s potential rate hike later this month further supports their bullish stance.
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Topics: bond yields inflation investment strategy Japan stocks US equities