Source: Zhitong Finance
Author: Ma Huomin

The Japanese stock market frenzy reached new heights on Wednesday as demand for Japanese stocks from foreign investors continued to soar and investors adjusted their positions before the MSCI stock index was readjusted. On May 31, the stock trading value on the main board market of the Tokyo Stock Exchange reached an unprecedented level of nearly 7 trillion yen (50 billion US dollars).According to data released by Japan's Ministry of Finance on Thursday, during the period up to May 26, foreign investors made net purchases of Japanese stocks for nine consecutive weeks, the longest since November 2019.

As part of its quarterly review of the Global Standards Index, MSCi included Kawasaki Kisen Kaisha Ltd., and excluded Nihon M&A Center Holdings. Investors adjusted their positions before the adjustments took effect, which also boosted market activity.

“There is no doubt that last-minute trading was influenced by passive fund rebalancing and speculators' reverse trading of the MSCI index,” said Hayato Yoshida, quantitative analyst at SMBC Nikko Securities.

Editor/Hoten