Woofun AI reports that Japan has no current intention to modify the target asset allocation of the Government Pension Investment Fund, according to sources familiar with internal government discussions. While the fund may increase exposure to domestic assets within its current flexible framework, no structural changes are planned.

The yen depreciated 0.4% to 162.36 per US dollar and Japanese government bonds weakened following the initial reports. Chief Cabinet Secretary Takehito Yuge clarified that the GPIF conducts annual portfolio reviews and will only initiate formal adjustments if market conditions change substantially. This follows Finance Minister Taro Aso's recent comments encouraging increased domestic holdings, which had previously strengthened the yen. The Ministry of Health, Labour, and Welfare declined to comment.