TOKYO, July 12 (Reuters) - Japan aims to raise the ratio of

unlisted shares, real estate and other alternative investments

in the portfolio of the Government Pension Investment Fund, the

world's largest pension fund, the Nikkei said on Sunday.

Finance Minister Satsuki Katayama, who has been trying to

boost the weak yen, sparked a jump in the currency and

government bond prices on Friday by saying the government aimed

to steer the $1.8 trillion GPIF and other state pension funds to

"substantially" increase investments in domestic assets.

Alternative investments, as distinct from conventional

assets such as listed shares and bonds, accounted for 1.7% of

GPIF's assets in March, far below the allowed 5% cap.

A government panel will soon compile a report stipulating

the ratio will be raised towards 5%, a move aimed at broadening

the scope of pension asset management and reducing overall

investment risks, the business daily reported, without citing

the source of the information.

No one was available to comment on the report outside

business hours at the Ministry of Health, Labour and Welfare,

which oversees GPIF.