Foreign Investment Japanese Stocks Actual 336.1B (Previous 309.3B)

Foreign Investment Japanese Stocks Actual 336.1B (Previous 309.3B)

Japanese investors continued their streak of foreign stock buying, reaching a net total of 336.1 billion yen ($2.3 billion) in the week ended May 10. This marks the eighth consecutive week of net foreign stock purchases by Japanese investors, according to data from Japan's Ministry of Finance [1].

The week's net purchases of 250.8 billion yen were significantly lower than the prior week's 2.55 trillion yen, but they contributed to a cumulative net acquisition of 8.2 trillion yen in foreign equities so far this year. This is the largest total for the same period since at least 2005 [1].

The surge in foreign stock buying is attributed to improving trade negotiations and easing concerns over the global economic impact of a trade war. The U.S. has reduced its combined tariffs on most Chinese imports from 145% to 30%, while China has agreed to cut duties from 125% to 10%. The MSCI World Index EURONEXT:IACWI has surged about 20.88% since hitting nearly a 15-month low of 722.57 on April 7 [1].

In addition to equities, Japanese investors also funnelled a net 1.92 trillion yen into long-term overseas bonds during the week ended May 10, reversing net sales of 514.2 billion yen the week prior. Meanwhile, Japan’s equity markets attracted around 439 billion yen in foreign capital, with cross-border investors extending net purchases to a sixth straight week [1].

The Nikkei 225 Index jumped 1.03% to close at 34,730 while the broader Topix Index rallied 1.14% to 2,559 on Friday, extending gains from the previous session amid hopes that ongoing trade talks between the US and Japan will lead to tariff concessions [2].

The Japanese government has announced plans to raise its incoming foreign direct investment target to 120 trillion yen ($840 billion) by 2030, aiming to attract more overseas capital to help revitalize struggling regional economies and address labor shortages [3]. The plan also outlines a longer-term objective of 150 trillion yen in foreign investment in the early 2030s.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3RN0A2:0-japanese-investors-extend-foreign-stock-buying-to-eighth-week-on-trade-optimism/
[2] https://tradingeconomics.com/japan/stock-market
[3] https://www.bloomberg.com/news/articles/2025-06-02/japan-to-seek-840-billion-of-inward-foreign-investment-by-2030