Notable Stock Flows Observed In Weekly International Flow Data

Equity market flows dominated the weekly Japanese international security flow data covering last week.

• Japanese investors shed foreign equities for a second consecutive week, registering the sharpest rate of net selling observed since Nov ’20.
• Meanwhile, foreign investors recorded the largest round of net weekly purchases of Japanese equities (based on records dating back to 2001), with currency related valuation aspects likely front and centre.
• Elsewhere, Japanese investors were virtually neutral in net terms when it came to foreign bonds, with the turn of the Japanese fiscal year failing to generate a notable boost in net activity.
• Finally, foreign investors were net buyers of Japanese bonds, breaking a streak of 3 consecutive weeks of net sales, with BoJ policy commitments seemingly hitting home after this investor cohort tested the central bank’s resolve.