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Japanese Stock Outflow

Foreign Investors Exit Japanese Stocks in Record Outflow, Shift Focus to Bonds

Posted on April 4, 2024
Writer: James Miller

Foreign investors pulled out 1.18 trillion yen ($9.07 billion) from Japanese stocks last week, marking the largest outflow since September 2023

The withdrawal from Japanese stocks was accompanied by a notable sell-off in derivative contracts, with foreign investors selling a net 967.32 billion yen, the largest in nine weeks. 

Additionally, approximately 213 million yen was pulled from cash equities. 

This retreat from Japanese stocks follows a period of significant gains. The Nikkei index increased by 5.63% the week before, even reaching a new high.

In the bond market, however, foreign investment showed a different trend. Investors purchased net long-term Japanese bonds worth 842.2 billion yen last week, a stark contrast to the 3.89 trillion yen net selling observed the week prior. 

This suggests a shift in foreign investor interest towards Japanese bonds despite the overall retreat from equities.

The substantial moves in both the stock and bond markets reflect a dynamic period for Japanese investments, driven by changing expectations around economic policies and market conditions.

For more information, read the full article on Reuters.


James Miller

James Miller is a Senior Content Writer at McGruff.com. He has a background in investing and has spent most of his career in the financial industry. He can trace his family tree back to the California Gold Rush when his ancestors risked it all to make it big in the west. He feels like he's following in their footsteps as he strives to make sense of today's gold market.

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