Foreigners turn net sellers of Japanese stocks for 2024 on concerns over yen strength
Updates story with graphic and foreign activity in Japanese stocks according to exchange data in paragraph 4
Sept 27 (Reuters) -Foreigners pulled out of Japanese stocks for a sixth successive week through Sept. 21 and turned net sellers for the year, due to lingering concerns over a stronger yen and increased caution ahead of the Bank of Japan's monetary policy decision.
Overseas investors withdrew a massive 1.93 trillion yen ($13.27 billion) out of Japanese stocks during the week, marking their ninth week of net selling in 10, according to data from the Ministry of Finance.
With these notable outflows in the past weeks, foreigners have turned net sellers of about 1.11 trillion yen worth of Japanese stocks so far this year, even as they made net purchases of about 6 trillion yen in the first half of 2024.
Exchange data showed that foreigners withdrew about 512.28 billion yen out of Japanese cash equity markets during the week, extending net sales into a fifth week. They also sold derivative contracts of about 246.12 billion yen.
Although the yen JPY= hit a 14-month high of 139.56 against the dollar last week, it has since declined about 4% as the BOJ maintained rates steady and signalled no rush to raise borrowing costs further, leading analysts to anticipate increased foreign investment in Japanese equities in the coming weeks.
The Nikkei share average .N225 hit a two-month high of 39,297.59 on Friday, led by a surge in semiconductor-related shares and a rally in global stocks.
In the Japanese bond market, foreigners shed a net 2.01 trillion yen worth of local long-term debt during the week, their biggest weekly net disposal since March 23, and about 883.3 billion yen worth of short-term securities.
At the same time, Japanese investors bought long-term foreign bonds for seven out of eight weeks of about 774 billion yen, while acquiring a net 53.8 billion yen worth of short-term debt instruments.
They, however, ditched a net 427.9 billion yen worth of foreign equities, their biggest weekly net sales since July 6.
($1 = 145.4100 yen)
Foreign flows into Japanese stocks https://reut.rs/3SQDye4
Foreign flows into Japanese stocks & futures https://tmsnrt.rs/40Muzfc
Foreign flows into Japanese debt securities https://tmsnrt.rs/3nsVz5d
Japanese investments in overseas debt securities https://tmsnrt.rs/3JW3oI3
Japanese investments in stocks abroad https://tmsnrt.rs/3nxoepG
Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu
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.
