Foreign inflow into Japan stocks surge ¥1.3 tln as domestic investors stay cautious abroad | investingLive

Japan weekly security flows (week ending October 24)

Japanese investors continued net sales of foreign assets last week, though the pace eased from the prior period.

• Japan buying foreign bonds: ¥-351.4 billion (previous ¥-669.7 billion)

• Japan buying foreign stocks: ¥-62.1 billion (previous ¥-288.1 billion)

• Foreign buying Japan bonds: ¥-253.5 billion (previous ¥-0.7 billion)

• Foreign buying Japan stocks: ¥ 1,344.2 billion (previous ¥ 752.6 billion)

Japan’s latest Ministry of Finance data for the week ending October 24 showed a mixed picture in cross-border portfolio flows, with Japanese investors continuing to sell foreign assets while foreign inflows into domestic equities accelerated sharply.

Japanese investors remained net sellers of foreign bonds at ¥351.4 billion, though outflows moderated from ¥669.7 billion the previous week. Sales of foreign equities also slowed to ¥62.1 billion from ¥288.1 billion.

Foreign investors, meanwhile, turned heavy buyers of Japanese equities, with net purchases surging to ¥1.34 trillion from ¥752.6 billion a week earlier — the largest weekly inflow in over a month. In contrast, foreign holdings of Japanese bonds fell by ¥253.5 billion, after a marginal ¥0.7 billion decline the week before.

The data highlight renewed global appetite for Japan’s equity market amid a weaker yen and improving earnings momentum, even as domestic investors maintain a defensive stance toward overseas exposure.