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3w ago

Foreign Investors Post First Weekly Net Sale of Japanese Stocks in 12 Weeks

Concerns over a spillover from the Israel-Iran conflict, coupled with rising inflation, prompted a shift in foreign sentiment with quarterly inflows nonetheless at a two-year peak.

A man stands next to an electronic stock quotation board inside a building in Tokyo, Japan August 2, 2024. REUTERS/Issei Kato/File Photo
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Overview

  • Foreigners sold a net ¥524.3 billion of Japanese equities in the week to June 21, marking their first weekly net sale since March 29, according to Finance Ministry data.
  • Tokyo Stock Exchange figures show the prior 12-week buying streak was driven by a rotation out of expensive U.S. stocks despite modest corporate earnings.
  • Heightened worries about oil import costs from the Israel-Iran conflict and core inflation at a two-year high weighed on foreign appetite for Japanese equities.
  • Japan attracted net foreign equity inflows of about ¥6.81 trillion in the second quarter, the largest quarterly total in two years.
  • Fixed-income flows reversed as investors pulled ¥368.8 billion from long-term bonds and snapped up ¥1.5 trillion of short-term bills, the strongest weekly demand in nine weeks.