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Japan Purchases Of Offshore Bonds At Highest Levels Since Early 2020

JAPAN DATA

Offshore investors resumed selling of Japan equities last week. We saw -¥854.7bn in outflows, more than reversing the inflows seen in the prior week. We have now seen outflows from Japan equities in 4 out of the past 6 weeks. Inflows into local bonds continued, but were quite modest at just ¥79.3bn, well down on the pace of the prior week.

  • Japan domestic outflows to offshore bonds surged last week to ¥3631.9bn. This is the strongest weekly outflow since February 2020. Prior to last week's outflow, the trend was for Japan investors to be modest net sellers of offshore bonds back to the start of July.
  • Japan investors continued to buy offshore stocks, but at a much more modest pace of ¥96.6bn compared to the prior week.

Table 1: Japan Weekly Investment Flows

Billion YenWeek ending September 8Prior Week
Foreign Buying Japan Stocks -854.7532.1
Foreign Buying Japan Bonds 79.3926.6
Japan Buying Foreign Bonds3631.990.7
Japan Buying Foreign Stocks96.6749.5

Source: MNI/Bloomberg

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