The Globe and Mail reports in its Wednesday edition that global money managers are circling back to Japan's stock and debt markets, drawn by the promises of its new reflationist government and a desire to diversify from pricier U.S. and European markets. A Reuters dispatch to The Globe says that flows into yen-denominated stocks and bonds have been sustained this month, fund managers said, as investors watched Japan's coalition partners wrangle and cut deals while positioning for right-winger Sanae Takaichi to become the country's Prime Minister. Her promises of stimulative spending, tax breaks, low interest rates and investments have powered Japan's Nikkei to record highs and are spurring investors to think about diversifying some cash from Europe and a frothy-looking Nasdaq. Ms. Takaichi's election along with "the psychological impact of having finally overcome the 'lost decades' of Japanese stocks, can certainly spur inflows," said Peter Vassallo, FX portfolio manager at BNP Paribas Asset Management in Boston. "It could dovetail with concerns about U.S. valuations and policy uncertainty to encourage some investors to reallocate away from what have become highly concentrated U.S. positions to Japan on the margin."