world-economy

Japan Considers Expanding Tax-Free Investment Program as Yen Pressures Domestic Markets

Japan's finance minister signaled plans to broaden a tax-advantaged investment vehicle by including government bonds. The goal is to redirect private capital toward domestic markets amid currency weakness. The nation's Government Pension Investment Fund, one of the world's largest institutional investors, stands ready to rebalance its portfolio as market conditions warrant, officials indicated. The moves represent a coordinated push to strengthen demand for yen-denominated assets and stabilize capital flows. Policy officials have grown concerned about sustained yen depreciation and its effects on import costs and market confidence. The proposed expansion would make the savings program more attractive to individual investors by offering bonds alongside existing equity options. Officials have not specified a timeline for implementation or detailed portfolio adjustment targets.