Japan

Major institutional investors across Asia are pouring capital into AI-linked infrastructure, expanding pension platforms and exploring new investment opportunities, while regulators revamp frameworks to support evolving capital flows.

Drawn by moderate inflation, low market correlation and resilient structural demand, investors are shifting their Asia Pacific (Apac) real estate allocations into Japanese logistics.

Once sidelined for low yields and an overvalued currency, Japan is winning back institutional capital across equities, debt and AI.

Rising Japanese government bond (JGB) yields drive institutions to reinvest at home, trimming foreign debt and cautiously adding alternatives.

Private market investments are accelerating drug discovery and capitalising on the burgeoning silver economy in the region.

Japan’s breadth and liquidity are drawing strategic capital, while Korea offers a potentially stronger re-rating, and Taiwan remains a core but concentrated technology exposure.

High foreign currency hedging costs and rising local interest rates are driving Japanese defined benefit funds back toward domestic bonds, general accounts and active manager restructuring.

GIC, ADIA and EQT exit Galderma in $6.28bn block trade; KKR, IMM Consortium Invest $2.23bn in SK Telecom’s AI data unit; Mongolia targets $2bn for AI and green data centres; Danantara commits $1bn to Partners Group private credit mandate; and more.

As people across developed Asia Pacific live longer, healthier and more independent lives, senior living is beginning to look less like a niche care category and more like a serious real estate opportunity, says M&G's Regina Lim.

Japan Investment Corporation (JIC) aims to transfer company-building expertise to local investors while raising governance standards across the domestic venture capital (VC) industry.

As AI demand drives tech valuations sky high, Chinese equities, healthcare and select cyclical sectors in the region are becoming more attractive.

Japan Investment Corporation is funding strategic tech while respecting the autonomy of global partners like Y Combinator to boost Japan's international competitiveness.