Japan encourages pension funds to buy domestic assets

Japanese Finance Minister Satsuki Katayama announced on July 10, 2026, that the government is pursuing measures to encourage the Japan — Government Pension Investment Fund (GPIF) to make substantially greater investments in Japanese financial assets. This move aims to support the yen, which has been near 40-year lows against the US dollar. The yen strengthened broadly, rising from above 162 to an intraday peak of 161.285 per dollar. Analysts noted that a structural shift in GPIF's allocation, currently 50% foreign investments, could provide sustained support for the yen, equities, and bonds. The announcement came amid ongoing Middle East tensions between the US, Israel, and Iran, which have cast a cloud over energy prices and global inflation but were largely brushed off by markets. The US dollar fell slightly against a basket of currencies. Meanwhile, the New Zealand — Reserve Bank of New Zealand hiked rates and signaled further tightening, with Westpac forecasting additional rate increases.