According to the Financial News APP, in the week ending November 2, Japanese investors significantly reduced their overseas assets due to caution before the USA presidential election, and the recent decline in the yen also prompted them to lock in profits.

According to data from the Ministry of Finance of Japan, Japanese investors withdrew 4.46 trillion yen (29.22 billion USD) and 1.17 trillion yen respectively from foreign long-term bonds and stocks, marking the fourth consecutive week of net sales.

Republican Donald Trump unexpectedly won the US presidential election on Tuesday with strong support. Before the results were announced, the gambling market favored a Trump victory, but opinion polls showed it was a close competition.

Since the fourth quarter, the yen has depreciated significantly, prompting Japanese investors to lock in profits. In the quarter ended September, Japanese investors purchased around 2.02 trillion yen of foreign stocks and 5.11 trillion yen of long-term bonds, while the yen appreciated about 11.98% against the US dollar during the same period. So far this quarter, the yen has fallen about 6.14%, providing an opportunity for foreign investors to realize profits.

Meanwhile, the Japanese stock market attracted approximately 139.4 billion yen of foreign inflow this week, marking the sixth consecutive week of net buying.

However, foreign investors sold a net of 42.6 billion yen of Japanese long-term government bonds last week, compared to a net purchase of 277.9 billion yen a week ago. At the same time, Japanese short-term notes received an inflow of 23.3 billion yen from foreign sources.