Source: Zhitong Finance
Foreign investors bought 1.18 trillion yen ($7.7 billion) of Japanese stocks last week, the most since 2013.
Last week, foreign investors bought 1.18 trillion yen ($7.7 billion) of Japanese stocks, the most since 2013. They are betting that Japanese companies will step up share buybacks and dividends to promote a more shareholder-friendly culture.
The Japan Exchange Group's data on Thursday showed that this was the second-largest weekly net purchase volume on record, after 1.5 trillion yen in 2013. According to the data, individual Japanese investors also poured in and snapped up 634 billion yen of stocks in the first week of this fiscal year. This is the highest level since September last year.
Ikuo Mitsui, fund manager of Aizawa Securities, said: “Foreign investors may think that Japanese companies can easily generate profits under moderate inflation. If the company shows a slightly positive impression of this year's earnings momentum, overseas purchases are likely to increase further.”
The Nikkei 255 Index fell 3.4% last week, the biggest weekly decline since December 2022, as Japanese investors sold stocks in large numbers, probably to make a profit.
Trust Bank's net sell-off reached a record 789 billion yen. These data are closely watched as they are thought to reflect the flow of funds from bank customers, such as large pension funds.
Although overseas investors sold 346 billion yen in stock futures, they bought both cash stocks and futures reached 836 billion yen, the largest amount since January.
“We expect foreign investors to slightly increase their holdings in the Japanese stock market in the first half of the year as they may continue to reduce their holdings (stock futures),” Mitsui said.
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