Foreign Investment Surge: Japanese Markets Witness Major Inflows

Foreign investors injected substantial capital into Japanese stocks ahead of the Liberal Democratic Party's election, selecting Sanae Takaichi as its leader and Japan's upcoming prime minister.

As a result, the Nikkei 225 climbed 4.75%, and the broader Topix Index rose 3.1% on Monday. These indexes hit new records following Takaichi's unexpected victory, sparking hopes for increased economic stimulus.

In addition to equity inflows, Japanese long-term bonds also attracted significant foreign interest, with a net inflow of 1.26 trillion yen. Conversely, Japanese investors continued to divest from foreign assets, marking a third consecutive week of net sales.

(With inputs from agencies.)