Many are expecting stocks to rise and the yen to depreciate when the GPIF revises its basic investment allocation ratios in September or later. However, quasi-public money, including the GPIF, can already be seen playing a supporting role in the market. From Jan-Mar 2014, versus TOPIX fell 7.6%, their Japanese stocks balance decreased 5.9%, and versus the 2.0% decline in USD/JPY, its balance for foreign bonds rose 2.6% and foreign stocks 1.1%.
Read the full report: FX Daily