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Barclays write that "Japanese institutional...>

JAPAN
JAPAN: Barclays write that "Japanese institutional investors' appetite for
foreign assets weakened in December. Foreign bond flows were mixed, while
investors sold foreign equities for the first time this fiscal year. In 2018 as
a whole, foreign bond investment rebounded strongly, due to substantial buying
by trust accounts and life insurers and reduced selling by banks, while foreign
equity investment decreased slightly. In December, Japanese investors were net
sellers of long/medium-term JGBs. In the superlong sector, trust banks and
foreigners logged large net purchases. Retail investors reduced their foreign
asset exposure, except via margin FX. Net issuance of uridashi bonds remained
negative, with INR and USD-denominated bonds eking out an increase while
major-currency bonds continued to decline. Toshin investment fund holdings
declined again, marking the largest decline since 2016. Margin FX investors
increased their net long foreign-currency positions amid JPY appreciation.
Cross-border M&A outflows rebounded, led by USD deals. M&A outflows reached a
record Y25.1tn in 2018, nearly double the previous high of Y12.6tn in 2016."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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