Japanese equities may soon look attractive, BlackRock's global chief investment strategist told CNBC on Friday.
Russ Koesterich's comment came soon after Japan adopted negative interest rates, and fears that the U.S. might mirror the policy helped ignite U.S. market volatility.
"The movement toward negative rates by central banks is going to be problematic in general because that is a tax on the banks," Koesterich said on "Closing Bell."
Negative rates remain a concern for the markets, as the Japanese yen strengthened to trade at $110.98 against the dollar on Thursday. The stronger yen raises questions about whether the Bank of Japan will be forced to further ease interest rates.