Japanese stocks log first weekly foreign outflow in nine weeks
Nov 28 (Reuters) - Foreign investors withdrew from Japanese stocks last week, ending an eight-week buying spree, influenced by losses in technology shares, rising geopolitical tensions, and expectations of a Bank of Japan interest rate hike in December.
Ministry of Finance data showed that foreigners divested a net 446 billion yen ($2.95 billion) worth of Japanese stocks in the week ending Nov. 23 - their first weekly net sales since Sept. 21.
Last week, Japanese technology stocks followed U.S. counterparts lower, dampening broader investor sentiment. Tech start-up investor SoftBank Group 9984.T shed 3.75% while chip-making equipment maker Tokyo Electron 8035.T hit a 2-1/2-month low.
BOJ Governor Kazuo Ueda last week signalled that the central bank would likely push rates up again soon. The Overnight Index Swap (OIS) JPIRP01=R indicate a 55.99% chance that the BOJ would raise rates to 0.5% at its December policy meeting.
The Nikkei stock index .N225 logged a second straight weekly loss,dropping 0.93% last week, hurt by concerns over potential tariffs by U.S. President-elect Donald Trump on Japanese exports and escalation in the Russia-Ukraine conflict.
Meanwhile, Japanese long-term bonds witnessed a net 300.7 billion yen worth of foreign outflows last week following about 1.16 trillion worth of inflows the week before. Foreigners also ditched 1.96 trillion worth of short-term bills.
Japanese investors, meanwhile, offloaded a net 318.1 billion yen worth of foreign stocks, marking their sixth weekly net sales in seven weeks.
They also withdrew 773.7 billion yen from overseas long-term bonds in their sixth week of net sales in seven weeks.
($1 = 151.3800 yen)
Foreign flows into Japanese stocks https://reut.rs/3SQDye4
Foreign flows into Japanese debt securities https://tmsnrt.rs/3nsVz5d
Japanese investments in stocks abroad https://tmsnrt.rs/3nxoepG
Japanese investments in overseas debt securities https://tmsnrt.rs/3JW3oI3
Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Eileen Soreng
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
