Global Funds Cautious on Adding Japan Bank Stocks Before BOJ
- Nomura Asset has been taking some profit on Japanese banks
- BOJ’s move priced into bank shares, JPMorgan Asset says
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Global investors including Nomura Asset Management Co. and JPMorgan Asset Management are cautious about adding more Japanese bank stocks to their portfolios, even as their profitability is expected to improve on a widely-expected rate hike by the nation’s central bank as early as next week.
Nomura Asset has been taking some profit on its Japanese bank holdings. While it’s still overweighting the sector, portfolio manager Yoshihiro Miyazaki says too many people are now chasing lenders on expectation of higher rates. JPMorgan Asset portfolio manager Michiko Sakai has reduced holdings of banks, as expectations for the BOJ’s move away from sub-zero rates have already been priced in by the market.