Japan has emerged as a prime destination for global investors as the trade war triggers a reassessment of capital flows into the US, according to Pacific Investment Management Co.
The Asian nation is drawing inflows that seek to benefit from “once-in-a-generation structural reforms” in equities and rising rates in fixed income after decades of monetary stimulus, according to Ben Ferguson, co-head of Pimco in Japan. US President Donald Trump’s policy announcements have been “disruptive” and the latest tariff announcements “highlight the need to, at least consider diversification,” he added.