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Inflows Into Japan Stocks Continue, Japan Investors Ramp Up Offshore Bond Purchases

JAPAN DATA

Japan weekly investment flows saw continued buying from offshore investors into local equities. A total of ¥621.3bn of net inflows were recorded last week. This marked the 6th straight week of inflows into the space. There had been some chatter such inflows from China investors may cool as the authorities look to prop up the local markets, but this didn't disrupt the aggregate flow picture (at least for last week). In terms of flows into local bonds they remained positive at ¥175.9bn, but down from the prior pace.

  • In terms of outbound Japan flows to the rest of the world, there was a sharp spike in offshore bond purchases, just under ¥1500bn, see the table below. The net flow picture into this has been positive since mid-Dec last year.
  • Offshore flows into overseas stocks by local investors were a much more modest ¥22.1bn.

Table 1: Japan Weekly Investment Flows

Billion YenWeek ending Feb 9Prior Week
Foreign Buying Japan Stocks 621.3308.2
Foreign Buying Japan Bonds 175.9397.7
Japan Buying Foreign Bonds1499.3456.7
Japan Buying Foreign Stocks22.1-194.5

Source: MNI - Market News/Bloomberg

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