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Offshore Investors Switch From Local Stocks To Bonds

JAPAN DATA

Weekly investment flows into Japan stocks and bonds were mixed last week. Offshore purchases of local bonds surged to ¥1131.5bn, the first weekly inflow since the start of July and the largest weekly inflow since early April. Net outflows from local stocks provided some offset, printing at -¥740.7bn. This was the largest weekly outflow since end March.

  • In terms of Japan purchases abroad, we saw a modest pick up in flows to offshore equities, ¥185.6bn. This was the first outflow to foreign stocks since mid June. Local investors continued to sell offshore bonds though, -¥263.2bn.

Table 1: Japan Weekly Investment Flows

Billion YenWeek ending August 18Prior Week
Foreign Buying Japan Stocks -740.7226
Foreign Buying Japan Bonds 1131.5-871.1
Japan Buying Foreign Bonds-263.2-333.6
Japan Buying Foreign Stocks185.6-54.2

Source: MNI - Market News/Bloomberg

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