Japanese stocks see largest foreign inflow in four weeks on trade optimism

Japanese stocks saw the largest foreign inflow in four weeks during the week ending 14 June, driven by optimism over U.S.-China trade talks and a weaker yen supporting exporters’ earnings.

According to finance ministry data, foreign investors purchased a net 473.4 billion yen ($3.26 billion) worth of Japanese stocks last week, marking the 11th consecutive week of foreign inflows into Japan’s equity market. This quarter, cross-border inflows into Japanese equities have reached approximately 7.34 trillion yen, positioning the market for its largest quarterly foreign investment in two years.

The Nikkei index hit a four-month high of 38,885.15 amid hopes for corporate reforms.

Additionally, a recent Bank of America survey named Japan as the most favored market in Asia.

Amid rising tensions in the Middle East, demand for safe assets pushed foreign purchases of Japanese government bonds to 434.5 billion yen for long-term bonds and 1.03 billion yen for short-term bills, the highest in eight weeks.

Meanwhile, Japanese investors increased their purchases of long-term foreign bonds by 1.57 trillion yen, the largest weekly net buy since mid-May.

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