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."