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Offshore Investors Dump Local Equities & Bonds

JAPAN DATA

Offshore investors remained heavy sellers of Japan stocks last week. We saw -¥3025.3bn in net outflows, see the table below. This is a record in terms of a weekly outflow from local stocks. It comes after the prior week's outflow of -¥1578.4bn. Since the start of August we have seen a cumulative -¥6101bn in outflows. Only 2 out of 8 weeks over the period have seen positive inflows.

  • Foreign investors were also chunky sellers of local bonds, -¥2025.1bn in outflows. This more than offsets the net inflows seen in the prior 3 weeks.
  • Japan outbound flows were much more modest in an absolute sense. Local investors sold -¥544.4bn of offshore bonds, while also selling offshore equities, albeit at a very moderate pace.

Table 1: Japan Weekly Investment Flows

Billion YenWeek ending September 22Prior Week
Foreign Buying Japan Stocks -3025.3-1578.4
Foreign Buying Japan Bonds -2025.1435.2
Japan Buying Foreign Bonds-544.4880.9
Japan Buying Foreign Stocks-6.262.6

Source: MNI - Market News/Bloomberg

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