Group 1 - Man Group's investment manager is increasing exposure to Japanese financial stocks due to expectations of interest rate hikes by the Bank of Japan to curb inflation [1] - The Man Japan CoreAlpha fund has assets of £2.45 billion ($3.3 billion) and has outperformed 93% of its peers over the past three years [1] - The fund's recent shift towards the banking sector is significant as it was previously underweight in this area at the beginning of the year [1] Group 2 - Bank of Japan Governor Kazuo Ueda dismissed claims of a delayed interest rate hike, dampening short-term rate hike expectations [3] - Current market indicators show a 55% probability of a rate hike by the end of the year, down from 79% prior to the July meeting [3] - The probability of a rate hike had previously reached 100% before political uncertainties arose [3] Group 3 - The investment manager anticipates that policy rates will move towards 1% once trade tensions and political uncertainties subside [4] - The fund's major holdings remain in the automotive and factory automation sectors, which are expected to rebound once trade agreements become clearer [4] - Continuous improvements in corporate governance are expected to enhance the performance of Japanese stocks, which have lagged behind other regional markets despite recent highs [4]