2023-09-28 07:39:41
Foreign investors pulled large amounts of money out of Japanese stocks last week, hit by concerns about U.S. interest rates, as the Federal Reserve’s latest statements indicated monetary policy would remain tight for longer.
Data from Japanese stock markets showed foreign investors dumped a net 1.26 trillion yen ($8.44 billion) worth of stocks in the week ended Sept. 22 , which represents the highest weekly outflow since March 17.
They sold 913.17 billion yen of cash shares and 340.1 billion yen of derivatives during the week.
Last week, the Fed held interest rates steady but forecast an increase by the end of the year, saying monetary policy is likely to be significantly tighter through 2024 than previously reported. ‘we thought before.
The Nikkei lost 3.37% last week, posting its worst performance since December 23, 2022. The broader Topix index also lost 2.15%.
Foreign investors have still accumulated about 7.15 trillion yen of Japanese stocks since the start of the year, compared with about 2.98 trillion yen in net sales last year.
Meanwhile, foreign investors offloaded a net 2.03 trillion yen of long-term Japanese bonds in the week ended September 22, the highest amount in eight weeks , according to data from the Japanese Ministry of Finance.
They also sold about 619.8 billion yen worth of short-term debt securities.
On the other hand, Japanese investors sold a net 544.4 billion of long-term foreign bonds after four weeks of consecutive net purchases. However, they have secured around 2.5 billion yen of short-term securities.
Japanese investors withdrew 6.2 billion yen from foreign stocks, marking the first weekly net sale in four weeks. ($1 = 149.3000 yen)
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