Japan's $1.16 trillion national pension fund said it would buy more shares at home, a move that may halt a month long sell-off in the Tokyo stock market after rapid gains earlier in the year.

The Government Pension Investment Fund, at a joint news conference with Japan's welfare ministry, said it has raised its target portfolio allocation of domestic stocks to 12% from the current 11%. The fund also said it would increase its allocation of overseas assets and cut back on low-yielding Japanese bonds.