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* Added around Y100 bln in yen bonds in H1
* Hedged foreign bonds holdings seen unchanged
* May invest Y10 bln yen in domestic equities in H2 (Adds details, comments)
By Chikafumi Hodo and Michiko Iwasaki
TOKYO, Oct 28 (Reuters) - Asahi Mutual Life Insurance Co said on Wednesday it plans to increase its yen bond holdings by 20-30 billion yen ($220-$330 million) from October to March amid an uncertain outlook for the global economy.
Japan's top nine life insurers held around $1.6 trillion in assets as of March 2009 -- about the size of Brazil's economy -- and investors closely watch their plans because their investments can affect financial markets.
Asahi Life, Japan's seventh-largest life insurer, which manages about 5.6 trillion yen in assets, added around 100 billion yen of domestic debt in the first half of the fiscal year, completing more than 80 percent of its requirements for the year.
"We actively increased holdings of Japanese government bonds when yields climbed around June," Hiroki Kimura, general manager of Asahi Life's asset management division, told Reuters in an interview.
"We'll continue to invest mainly in yen bonds in the second half of the year to secure a stable income."
The firm's overall holdings of yen bonds now stand at 2.4 trillion yen, with maturities averaging slightly over nine years.
Asahi Life forecasts the yield on the benchmark 10-year Japanese government bonds will move in a range between 1.1 and 1.6 percent until the end of March.
It was at 1.410 percent on Wednesday after jumping to an eight-month high of 1.560 percent in June.
Asahi is not expecting JGB yields to climb sharply despite concerns of more government bonds issuance as there will still be plenty of investor demand, Kimura added.
"Domestic corporate spending remains tight and the labour market is still tough. In addition, the yen's rise will make it difficult for the economy to pick up convincingly," said Kimura.
JAPANESE STOCKS, FOREIGN BONDS UNCHANGED
The proportion of loans in Asahi Life's portfolio will fall as they are repaid, while domestic equities and foreign bond weightings will be largely unchanged, Kimura continued.
The insurer may invest 10 billion yen in domestic equities from October to March after cutting the same amount in the first half, in order to meet its annual target of 360 billion yen, Kimura said.
The life insurer predicts the benchmark Nikkei share average will move between 9,000 and 12,000 in the second half of the fiscal year.
Asahi Life sees the dollar trading between 85 and 95 yen during October-March and holding around 90 yen at the end of March. The euro will stay in a range between 120 and 140 yen in the second half, Kimura said.
He added that the yen will not gain much more against the greenback as he expects Japanese interest rates to stay low.
Asahi Life will consider removing currency hedges on some of its foreign bond holdings should the yen weaken substantially, without specifying particular levels.
About 80 percent of its foreign bond holdings are dollar-denominated, while 20 percent are in euro.
The company could slightly reduce its holdings of hedge funds from the 50 billion yen held in April, and it does not have immediate plans to invest in emerging markets, Kimura said.
"I'm aware about current conditions in emerging markets, but we have to put more weight on safety. Of course we take some risks, but we simply can't jump into emerging markets just by focusing on high returns," Kimura said. (Reporting by Chikafumi Hodo and Michiko Iwasaki; Editing by Joseph Radford)