Surge in Foreign Investment Boosts Japanese Stocks
Japanese stocks experienced the largest foreign investment inflow in four weeks, fueled by optimism over U.S.-China trade talks and a softer yen, easing concerns about exporters' earnings. The net foreign purchase of Japanese stocks reached 473.4 billion yen, marking the 11th consecutive week of such inflows and positioning this quarter to attract the highest foreign investments in two years.
In the week ending June 14, Japanese stocks saw the largest foreign investment inflow in a month, driven by optimisms surrounding U.S.-China trade negotiations and a weaker yen. These developments alleviated concerns regarding exporters' earnings.
According to the finance ministry, net foreign purchases of Japanese stocks amounted to 473.4 billion yen ($3.26 billion), marking the 11th straight week of such investments and indicating potential for this quarter to receive the largest quarterly inflow in two years, currently at 7.34 trillion yen.
The Nikkei share average climbed to a four-month peak of 38,885.15, buoyed by anticipated corporate reforms. Concurrently, investors seeking safe haven assets amid Middle Eastern tensions increased their holdings of Japanese government bonds, continuing their trend of net purchases for the third week in a row.
(With inputs from agencies.)
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