Foreign Investors Start Selling Japanese Equities

The fall of Japanese yen has been accompanied by the rise of the Nikkei Index. Data from the Ministry of Finance might be a warning sign that foreign investors are starting to doubt the sustainability of the Bank of Japan’s plan and could cool down the local stock market.

The fall in the yen helped Japanese companies during their earnings report. Nintendo had a less than stellar quarter after their mobile console failed to take off, but the current yen levels contained the backlash.

Chatter over whether Japan’s soaring stock markets are due for a correction gained momentum after data on Thursday revealed that foreign investors, who have been huge buyers of Japanese equities in recent months, became net sellers in the past week.
According to data from the Ministry of Finance, foreign investors were net sellers of Japanese equities in the week through to April 20, with a net outflow of 27.9 billion yen ($281 million) after they bought 1.57 trillion yen of stocks in the previous week.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza