Foreign Investors Exit Japanese Market Amid Tech Stock Decline
Foreign investors became net sellers of Japanese stocks for the first time in nine weeks, divesting $3.37 billion as tech stock selloff halted a market rally. The Nikkei Index dropped 1.72%, and prominent investors like SoftBank Group faced significant losses. Japanese and international bond markets also saw notable outflows.
In a surprising turn of events, foreign investors have become net sellers of Japanese stocks for the first time in nine weeks, divesting a significant $3.37 billion. This cautionary move follows a technology stock selloff which put the brakes on a recent market rally.
Market data from Japan's Ministry of Finance revealed on Thursday that the Nikkei 225 Index experienced a 1.72% decline, a reflection of investor sentiment after reaching a record high earlier in the week. Major investors, such as SoftBank Group, which experienced a notable rise earlier this month, suffered a steep 9.9% drop.
Additionally, the Japanese bond market was not spared, with long-term bonds seeing a net foreign outflow of 106 billion yen. Meanwhile, Japanese investors pulled out 306.1 billion yen from foreign stocks, marking their third weekly net sales in four weeks.
(With inputs from agencies.)
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