Foreign Investment Surge in Japanese Stocks Amid AI and Tech Boom
Foreign investors continued their buying spree of Japanese stocks for the eighth consecutive week, driven by easing oil prices and a surge in AI-related shares. With tech giants like Nvidia forecasting high demand, the Japanese stock market witnessed a significant influx of foreign capital.
Foreign investors have been buying Japanese stocks for eight straight weeks, driven by easing oil prices and a rally in AI-related shares. According to the Ministry of Finance, foreign investors poured a net 1.08 trillion yen ($6.77 billion) into Japanese stocks in the week ending May 23, a 14% increase from the previous week.
The technology sector has been particularly attractive to investors, especially after Nvidia's forecast of substantial demand for its AI chips. This optimism led to a 17.62% surge in SoftBank Group's shares, while chip designer Socionext saw a 12.26% rise.
So far this year, foreign investments in Japanese stocks have totaled nearly 11.7 trillion yen, dwarfing the net 742.1 billion yen purchases over the same period last year. However, foreign investors divested 2.22 trillion yen in short-term instruments, their highest withdrawal since March 28, indicating apprehensions in the short-term market dynamics.
(With inputs from agencies.)
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