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Barclays note that "Japanese investment.......>

JAPAN: Barclays note that "Japanese investment flows into foreign bonds and
equities remained solid in July. Broad-based demand for foreign bonds came from
banks, trust banks, bank trust accounts, and lifers. Demand for foreign equities
remained positive for the fourth straight month. In June, Japanese investors
continued to sell US, German, and Italian bonds, while their overall demand for
European bonds remained firm. Flows into JGBs differed sharply by sector and
investor amid speculation around BoJ policy tweaks. Insurers and financial
institutions for agriculture/forestry made large net purchases in the super-long
sector while foreigners stood out in other sectors. Foreign investors became net
buyers of Japanese equities in July after two months of selling. Domestic
institutional investors continued to accumulate equities, while households
remained net sellers for a fourth consecutive month. Cross-border M&A outflows
in July increased, with both USD and EUR deals. YTD M&A outflows remain far
above any year in the past decade, even without Takeda Pharmaceutical's enormous
bid for Shire in May. Margin FX investors sharply reduced their long TRYJPY
positions amid the FX rout in mid-August."
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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