PIMCO said that Japan will become the preferred destination for global investors due to US President Trump's tariff policy to transfer funds out of the US. Ben Ferguson, co-head of PIMCO Japan, said that Japan is attracting capital inflows. These funds hope to seize the “once-in-a-century structural reforms” of the stock market and the opportunities for rising interest rates that will be brought to fixed-income assets after decades of easing and stimulus exits. Trump's tariff policy statement is disruptive, and the new round of tariff threats highlights the need to diversify assets, or at least consider doing so. PIMCO expects investors to further increase the Japanese bond market, which is the third largest bond market in the world. Ferguson pointed out that compared to huge US bonds, this is an attractive diversified option, especially when exchanging Japanese yen bonds for US dollars.

PIMCO said that Japan will become the preferred destination for global investors due to US President Trump's tariff policy to transfer funds out of the US. Ben Ferguson, co-head of PIMCO Japan, said that Japan is attracting capital inflows. These funds hope to seize the “once-in-a-century structural reforms” of the stock market and the opportunities for rising interest rates that will be brought to fixed-income assets after decades of easing and stimulus exits. Trump's tariff policy statement is disruptive, and the new round of tariff threats highlights the need to diversify assets, or at least consider doing so. PIMCO expects investors to further increase the Japanese bond market, which is the third largest bond market in the world. Ferguson pointed out that compared to huge US bonds, this is an attractive diversified option, especially when exchanging Japanese yen bonds for US dollars.