Foreign inflow into Japan stocks surge ¥1.3 tln as domestic investors stay cautious abroad

Japan weekly security flows (week ending October 24)

Japanese investors continued net sales of foreign assets last week, though the pace eased from the prior period.

• Japan buying foreign bonds: ¥-351.4 billion (previous ¥-669.7 billion)

• Japan buying foreign stocks: ¥-62.1 billion (previous ¥-288.1 billion)

• Foreign buying Japan bonds: ¥-253.5 billion (previous ¥-0.7 billion)

• Foreign buying Japan stocks: ¥ 1,344.2 billion (previous ¥ 752.6 billion)

Japan’s latest Ministry of Finance data for the week ending October 24 showed a mixed picture in cross-border portfolio flows, with Japanese investors continuing to sell foreign assets while foreign inflows into domestic equities accelerated sharply.

Japanese investors remained net sellers of foreign bonds at ¥351.4 billion, though outflows moderated from ¥669.7 billion the previous week. Sales of foreign equities also slowed to ¥62.1 billion from ¥288.1 billion.

Foreign investors, meanwhile, turned heavy buyers of Japanese equities, with net purchases surging to ¥1.34 trillion from ¥752.6 billion a week earlier — the largest weekly inflow in over a month. In contrast, foreign holdings of Japanese bonds fell by ¥253.5 billion, after a marginal ¥0.7 billion decline the week before.

The data highlight renewed global appetite for Japan’s equity market amid a weaker yen and improving earnings momentum, even as domestic investors maintain a defensive stance toward overseas exposure.