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Offshore Investors Continue Local Stock Purchases, Return To Local Bond Market

JAPAN DATA

Weekly offshore investment flows showed mixed trends up to the week ending July 12. Offshore investors continued to purchase local stocks, albeit at a reduced pace compared to the prior week, see the table below. The general trend around offshore appetite for local stocks has remained firmly positive going back to the start of April. Offshore investors also returned to local bonds last week. This ended a run of 4 week's of consecutive outflow from offshore investors in this space.

  • In terms of Japan outbound flows, local investors were sellers of offshore equities for the third straight week, albeit at a reduced pace.
  • Local investors sold offshore bonds as well, largely offsetting last week's inflows. The trend for local investors has been to sell offshore bonds in recent months.

Table 1: Japan Weekly Investment Flows

Billion YenWeek ending July 12Prior Week
Foreign Buying Japan Stocks 227.6603.5
Foreign Buying Japan Bonds 770.5-232.4
Japan Buying Foreign Bonds-208.9209.7
Japan Buying Foreign Stocks-136.3-569.3

Source: MNI - Market News/Bloomberg

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