Japanese Foreign Stock Investment Actual -1144.1B (Previous -524.7B)

Japanese Foreign Stock Investment Actual -1144.1B (Previous -524.7B)

Title: Japanese Foreign Stock Investment Actual -1144.1B (Previous -524.7B)

Japanese investors continued their robust foreign stock buying spree, with net purchases of 250.8 billion yen ($1.72 billion) in the week ended May 10, according to data from Japan's Ministry of Finance. This marks the eighth consecutive week of foreign stock buying by Japanese investors. The cumulative net investment in foreign equities for the year stands at 8.2 trillion yen, the highest since at least 2005 [1].

The surge in foreign stock purchases can be attributed to improved investor sentiment, bolstered by progress in U.S. trade negotiations and easing concerns over the global economic impact of the trade war. The MSCI World Index, which includes 23 developed markets, has surged by about 20.88% since hitting a 15-month low in April. This rebound has been fueled by positive developments in trade relations and economic indicators [1].

In addition to stocks, Japanese investors also increased their net holdings of long-term overseas bonds by 1.92 trillion yen, reversing the previous week's net sales of 514.2 billion yen. Meanwhile, Japan’s equity markets attracted around 439 billion yen in foreign capital, with net purchases continuing for the sixth straight week [1].

However, Japanese equity funds experienced their largest weekly outflows since 2007 in the week to May 28, with net outflows of $7.49 billion. This was driven by domestic investors who pulled $7.55 billion from local funds, while foreign funds recorded $59 million in net inflows. The outflows were largely due to profit-taking and cautiousness about earnings potential, exacerbated by the yen's appreciation against the U.S. dollar [3].

In a separate development, Dai-Ichi Life Holdings is set to acquire a 15% stake in M&G PLC, marking a significant expansion of Japanese investments in global asset management. This strategic partnership aims to boost Dai-Ichi's presence in Europe and the UK, with an expected investment of $6 billion in M&G funds over the next five years. The deal is part of Dai-Ichi's broader strategy to diversify its investment portfolio and seek higher returns in an environment of declining yields on traditional investments [2].

These developments underscore the growing role of Japanese investors in the global financial markets, driven by a combination of economic factors, strategic partnerships, and a search for higher returns.

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://www.mingtiandi.com/real-estate/finance/japans-dai-ichi-life-buying-15-stake-in-mg-to-rank-as-largest-shareholder/
[3] https://www.reuters.com/business/japanese-equity-funds-log-sharpest-weekly-outflows-since-2007-2025-06-03/