Japan investors plan shift from U.S. stocks:
TOKYO, Aug 31 (Reuters) - Japanese financial institutions plan to shift funds away from U.S. stocks and boost their weighting in Japanese and other Asian equities next month amid expectations of further dollar weakness, a Reuters survey shows.
The monthly Global Asset Allocation survey asked 11 Japan-based financial institutions in late
August about their investment strategy for September.
The average overall weighting for stocks rose slightly to 53.44 percent from 52.55 percent the previous month, surpassing that for bonds for the sixth month in a row.
The weighting for global bonds was at 33.50 percent, down from 33.88 percent, and that for cash was 13.06 percent, down from 13.58 percent.
Japanese stocks grew in popularity in the model portfolios, rising to a weighting of 21.78 percent
from 20.44 percent in the previous survey for August allocations.
At the same time, the weighting for the United States and Canada fell sharply to 40.91 percent from
44.66 percent.
''We expect Japanese equities to trade with a bullish tone. The market will welcome the trend of
(corporate) restructuring, although financial stocks that have surged recently may see a slight
setback,'' said a strategist at Daiwa Institute of Research.
News that three of Japan's biggest banks -- Dai-Ichi Kangyo Bank , Fuji Bank and the Industrial
Bank of Japan -- will join up next year and integrate their business operations by spring 2002
sparked hopes for broad corporate restructuring.
The outlook for other Asian stocks also brightened, with the average weighting rising to 3.85 percent
from the previous 1.92 percent, the survey also showed.
In contrast, global fund managers turned cooler on Wall Street stocks.
''The dollar's recent weakening trend is a sign that money flows into the United States are beginning
to slow, which could make the U.S. stock market vulnerable,'' said a global strategist at Nomura
Securities Co Ltd.
Meanwhile, the equity weighting for Europe, including Britain, rose to 33.36 percent from 32.78
percent.
Investors and strategists said the increase was supported by hopes for an economic recovery in the
region and a steadier euro.
The weighting for bond investment in Europe including Britain slipped to 51.07 percent, but was still
above the 38.43 percent for the United States and Canada.
The weighting for Japanese bonds was 9.36 percent, up from 7.67 percent in the previous survey.
Nomura Securities said it would raise its weighting in German assets to reduce its exposure to further
dollar weakness.
But many investors remained cautious over Europe.
Asset allocators also said there were lingering doubts over Japanese bonds.
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