Japan\'s government is pushing a plan to gradually raise the Government Pension Investment Fund\'s allocation to alternative investments to about 5 percent from 1.7 percent, with the recommendation to be reflected in the next GPIF policy report. The shift could move billions of dollars into private equity, private credit, real estate and infrastructure. The government is also urging bigger domestic investment by public pension funds, amid stronger GDP data and a policy backdrop of higher inflation forecasts and recent rate hikes.

ETF portfolio manager Michael Gayed warned again of a possible global liquidity crisis and cited the yen, gold, oil, XRP and U.S. Treasuries as assets to watch. He argued Japan could become a catalyst for market shock, with Asian currency instability and a reverse carry trade adding to selling pressure. He also said higher commodity prices in yen terms could pressure Japan and lead Tokyo to sell Treasuries more aggressively.