Japan’s Pension Funds Lost $64 Billion After Chinese Market Rout

China’s summer market meltdown has claimed another victim — Japanese pensioners.

Japan’s government pension fund — the world’s largest — lost $64 billion in the three months to September 30, and much of that was due to crashing share prices in China.
Global stocks tumbled in August and September, driven by the crash in Chinese markets. Volatility remained as concerns grew over a wider economic slowdown.

The Japanese fund’s value fell 5.6% to 135 trillion yen ($1.1 trillion), according to a report released Monday. The fund’s holdings of Japanese stocks lost nearly 8%, while its international stock holdings tumbled 11%.

Japan has the oldest population in the world — more than a quarter of people are over 65, and nearly 30,000 turned 100 last year. Saving in the government pension fund is mandatory for all Japanese, and investment managers face growing pressure to generate higher returns for the rapidly aging population.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza