Offshore Inflows Into Local Stocks Continued For 4th Straight Week

The pace of offshore inflows into Japanese stocks picked up last week, see the table below. Foreign investors purchased net ¥720.3bn worth of local stocks, building on inflows from the prior week. Since the start of the year, we have seen a cumulative ¥2506.1bn in net inflows into this segment. In terms of bond purchases, we returned to net outflows last week, ending a positive 2 week run of inflows into this space.

• In terms of Japan outflows to the rest of the world, we saw a ¥382.9bn rebound to offshore bonds, which have generally been on a positive trend since the start of the year (3 out of 4 weeks with positive inflows).
• We saw modest net selling of offshore stocks by local investors, but this only partially unwound the prior week's inflow.

Table 1: Japan Weekly Investment Flows

Source: MNI - Market News/Bloomberg