Japanese investors are still net sellers of foreign bonds despite Shinzo Abe's policy of aggressive fiscal stimulus, with the situation unlikely to change until inflation starts to climb, M&G's Mike Riddell has said.
Japanese shares have clawed back some of their losses after falling more than 7% yesterday in a dramatic trading session.
A spike in Japanese government bond volatility has raised concerns that the unintended consequences of new policy measures could further derail the equity market rally.
Psigma has dodged today's Japanese equity sell-off after the firm's CIO Tom Becket told its investment managers to reduce exposure earlier this week amid fears a pullback was imminent.
The Japanese market has gone from strength to strength this year, with shares soaring as the recent expansionary policies of new Prime Minister Shinzo Abe power the economy. But which funds offer investors the best way to play the ongoing rally?