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Offshore Sell Both Local Equities & Bonds

JAPAN DATA

Offshore appetite for Japan stocks continued to wane last week. We saw -¥603.8bn yen in outflows from local stocks, building on the prior week's -¥740.8bn in outflows. August saw -¥1178.2bn in outflows. This somewhat reverses the positive trend seen through April to July. Offshore flows to local bonds were negative as well, -¥551.5bn yen, albeit only partially unwinding the prior week's inflow. Still, offshore investors have sold local bonds in 6 out of the last 7 weeks.

  • In terms of Japan outbound flows, local investors bought offshore bonds, +¥425.1bn, reversing the sale trend seen in the prior 2 weeks. Japan investors sold foreign stocks though, -¥218.5bn, although trends have been moderate in this segment in recent weeks.

Table 1: Japan Weekly Investment Flows

Billion YenWeek ending August 25Prior Week
Foreign Buying Japan Stocks -603.8-740.8
Foreign Buying Japan Bonds -551.51129
Japan Buying Foreign Bonds425.1-275.2
Japan Buying Foreign Stocks-218.5177.7

Source: MNI - Market News/Bloomberg

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