Bank of America: Asian funds have reached a historical high in betting on Japanese stocks

According to a survey by Bank of America Securities, this month Asian fund managers have reached a historical high in their overallocation to Japanese stocks. The reason is that the market is optimistic about the Japanese economy and is expecting more corporate governance reforms. Bank of America Securities strategists Ritesh Samadhiya and Masashi Akutsu stated in a report that in the Bank of America September survey of Asian fund managers, 61% of respondents increased their holdings of Japanese stocks, marking the highest net percentage since the market was included in the study in October 2023. They wrote, "The survey gave 'overwhelmingly positive evaluations' of Japan's growth prospects." Banks and the semiconductor industry are the most favored sectors by investors, and value stocks and mid-cap stocks are also popular.