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Offshore Inflows Into Japan Stocks Continue To Lose Momentum

JAPAN DATA

Foreign appetite for Japan stocks continued to cool. Last week we saw just ¥101bn of net buying. This was down from the prior week, and comfortably below weekly averages for Q2 (+¥732bn). Offshore investors were also sharp sellers of local bonds, with -¥1204.2 in outflows. This was the largest weekly outflow since the end of March.

  • Recent trends were maintained in terms of Japan flows to the rest of the world. Local investors were larger sellers of offshore bonds last week (-¥973.8bn), while selling of foreign stocks also continued (-¥445.3bn).

Table 1: Japan Weekly Investment Flows

Billion YenWeek ending July 21Prior Week
Foreign Buying Japan Stocks 101.0238.5
Foreign Buying Japan Bonds -1204.2-416
Japan Buying Foreign Bonds-973.8-76.6
Japan Buying Foreign Stocks-445.3-673.4

Source: MNI - Market News/Bloomberg

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