Foreign Capital Continues To Pour Into Japanese Equities

Weekly international security flow data from the Japanese MoF revealed that Japanese investors were net buyers of international bonds in the week ending 14 April, breaking a run of two consecutive weeks of net sales, although net purchases weren’t exactly sizable. As we have flagged before, investment intentions from the major Japanese life insurers and pension funds should filter out over the next couple of weeks and could provide some loose steer for this metric going forward.

• Elsewhere, Japanese investors were small net sellers of international equities last week, although net flows were minimal.
• International investors were marginal net buyers of Japanese bonds last week, registering a third consecutive week of net purchases in the process.
• Finally, international investors were net buyers of Japanese equities for a third consecutive week, with net purchases easing back a touch from the record levels registered in the week prior, but still sitting at the second highest level on record. This run of strong net purchases comes after Berkshire Hathaway’s Warren Buffett and Man Group flagged optimism re: Japanese equities in recent days.

Source: MNI - Market News/Bloomberg/Japanese Ministry Of Finance