Surge in Foreign Investment: Japan’s Stock Market Booms Amid Leadership Change
Foreign investors have been pouring money into Japanese stocks for a third consecutive week, with 752.6 billion yen invested recently. This influx is buoyed by the election of Sanae Takaichi as Japan's first female prime minister. The Nikkei 225 hit an all-time high, reflecting investor optimism.
Foreign investors continued their buying spree in Japanese stocks for the third straight week, amassing a net 752.6 billion yen as of October 18. This upsurge is linked to optimism surrounding Sanae Takaichi's ascent as Japan's first female prime minister, notorious for her fiscally lenient stance.
The Nikkei 225 index achieved a historic peak of 49,945.95, buoyed by Takaichi’s election and the anticipated reversion to aggressive fiscal policies reminiscent of Abe-era economic strategies. For 2023, foreign investments in Japanese stocks have soared to 5.28 trillion yen.
Despite hefty stock investments, foreigners retracted 700 million yen from Japanese long-term bonds, marking a shift following steady purchases since late September. Meanwhile, Japanese investors scaled back their foreign securities exposure, divesting 288.1 billion yen in stocks and 669.7 billion yen in bonds.
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