Japan Portfolio Flows: Foreign Investors Sell Bonds, Buy Stocks
Japan's weekly portfolio flow data for the week of June 20 shows foreigners net sold ¥1,057.3B in Japanese bonds, a larger outflow than the prior week, while they net bought ¥479.4B in Japanese stocks, reversing prior selling. Japanese investors increased overseas stock purchases and reduced bond buying.
The Ministry of Finance released weekly portfolio flow data for the week ending June 20. Key highlights:
- Foreign flows into Japan:
- Bonds: net selling of ¥1,057.3B (vs. prior net selling of ¥531.0B)
- Stocks: net buying of ¥479.4B (vs. prior net selling of ¥785.1B)
- Japanese flows overseas:
- Bonds: net buying of ¥199.7B (down from ¥382.6B the prior week)
- Stocks: net buying of ¥426.8B (vs. prior net selling of ¥418.3B)
The data suggests foreign investors reduced exposure to Japanese debt while turning net buyers of Japanese equities. Meanwhile, Japanese institutions continued to acquire foreign assets, though bond purchases slowed.
Source: First Squawk