Japan's Finance Minister, Shunichi Suzuki, has indicated that the Government Pension Investment Fund (GPIF) is prepared to modify its portfolio allocation if circumstances require it.

He conveyed that the ultimate direction is towards a growth strategy aimed at enhancing Japan's value, and he hopes this message is clear. The minister also underscored the significance of investing in domestic assets, suggesting that yen-denominated assets will become more appealing if the growth strategy is successfully advanced. In light of current government policies, as mentioned by the Chief Cabinet Secretary, a portfolio review may be conducted and adjustments made when necessary.

The Chief Cabinet Secretary noted on Monday that the GPIF routinely evaluates its investment portfolio.

Additionally, the Finance Minister remarked that it is now an appropriate time to consider including Japanese government bonds in the list of eligible products for the Nippon Individual Savings Account, a tax-exempt investment scheme.

Market attention has been on the fund since the minister stated last Friday that he aims to encourage Japan's major public pension funds to increase their investments in domestic assets. He explained that this move would help households benefit more directly from the nation's economic growth as Japan enters a new phase of economic expansion and rising interest rates.

Following the Finance Minister's comments, the Japanese yen briefly strengthened before largely stabilizing. In early Tuesday trading in Tokyo, the yen was hovering near 162.33 per US dollar, not far from the 40-year low of 162.84 reached earlier this month.