Japan Using Public Funds To Prop Up Nikkei

The Japanese government is obviously pretty freaked out with the Nikkei falling daily and currently sitting at a 26-year low.

Officially, the government can only do so much, like provide cheap loans to companies to help them stay afloat. Unofically, well…

WSJ: One hint that public pension funds may have been buying in recent sessions is that Japanese trust banks, which the funds use to make their investments, have been big net buyers of domestic equities lately, traders said.

Japanese trust banks bought about a net 855 billion yen ($8.65 billion) of stocks while foreign investors placed net sell orders of 817 billion yen in February, according to Tokyo Stock Exchange data.

“Our transaction department has received some large orders from pension funds recently,” a senior strategist at a Japanese brokerage firm said.

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