Foreign Investment Surge: Japanese Markets Witness Major Inflows
Foreign investors poured significant capital into Japanese stocks as Sanae Takaichi became the head of the Liberal Democratic Party. The Nikkei 225 and Topix Index achieved record levels. Japanese long-term bonds and short-term bills also saw increased foreign inflows, while Japanese investors continued to divest foreign assets.
Foreign investors injected substantial capital into Japanese stocks ahead of the Liberal Democratic Party's election, selecting Sanae Takaichi as its leader and Japan's upcoming prime minister.
As a result, the Nikkei 225 climbed 4.75%, and the broader Topix Index rose 3.1% on Monday. These indexes hit new records following Takaichi's unexpected victory, sparking hopes for increased economic stimulus.
In addition to equity inflows, Japanese long-term bonds also attracted significant foreign interest, with a net inflow of 1.26 trillion yen. Conversely, Japanese investors continued to divest from foreign assets, marking a third consecutive week of net sales.
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