Japanese stocks attracted the largest weekly foreign investment in over four months in the week of August 16, fuelling a record-setting market rally on prospects of a U.S. rate cut, while strong domestic economic growth data also boosted sentiment.
Foreigners snapped up a net 1.16 trillion yen ($7.87 billion) worth of Japanese stocks in their most robust weekly purchase since April 5, data from Japan’s Ministry of Finance showed on Thursday.
The Nikkei 225 Index, which has so far rallied nearly 39% since hitting a 1-1/2-year low of 30,792.74 on April 7, gained 3.73% last week. The index hit an all-time high of 43,876.42 on Tuesday, but has since come off the record levels due to a decline in technology stocks.
Foreigners have so far pumped approximately 4.22 trillion yen in Japanese stocks in the current quarter, adding to the massive 7.19 trillion yen net purchase made in the last quarter.
Japanese long-term bonds also saw a net 197.9 billion yen inflow in a second successive weekly net foreign purchase.
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Short-term bills, however, had 2.84 trillion yen in weekly outflows, the largest weekly foreign net sales since April 27, 2024. At the same time, Japanese investors added a net 395 billion yen worth of foreign stocks, ending their two-week selling spree. They, however, divested foreign long-term bonds of 313.6 billion yen, registering their third weekly net sales in four weeks.
AloJapan.com