Japanese Investors Shift Focus Amidst Slowed Foreign Stock Selling
Japanese investors continued to sell foreign stocks for the fourth consecutive month in August, albeit at a reduced pace. While selling a net 86.8 billion yen in stocks, they bought 411 billion yen in foreign debt. Investment trusts and insurers also boosted investments in foreign stocks and bonds.
In August, Japanese investors maintained their streak of selling foreign stocks for the fourth month, although the pace of divestment slowed significantly. Data from Japan's Ministry of Finance indicated a net sale of 86.8 billion yen, the smallest since a sizable 3.27 trillion yen purchase in April.
Diversifying their strategies, Japanese investors purchased 411 billion yen worth of foreign debt securities, marking the fourth consecutive month of net purchases. Trust accounts, primarily pension funds, continued their trend of divesting from foreign stocks in favor of long-term bonds, selling a net 696.7 billion yen in stocks while acquiring 1.99 trillion yen in bonds.
Japanese investment trust management firms and insurers increased their activities in the foreign stock market by injecting net amounts of 806.8 billion yen and 124.3 billion yen, respectively. July data from the Bank of Japan further highlighted a shift, with investors selling US stocks for a third month yet making substantial investments in US and European bonds.
(With inputs from agencies.)
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