“Japanese Stocks See Large Foreign Inflow”, Foreign investors showed strong interest in Japanese stocks during the week ending July 5, spurred by a market rally and optimistic projections for robust corporate earnings in the latter half of the year.
According to exchange data, overseas investors bought Japanese stocks worth a net 916.05 billion yen ($5.67 billion) last week. This marks their largest weekly net purchase since January 12, reflecting robust confidence in the market amidst a strong rally and positive expectations for corporate earnings in the upcoming months.
Investors snapped up derivative contracts of around 732.36 billion yen while securing cash equities of about 183.69 billion yen on a net basis.
The Nikkei share average jumped 3.36 per cent last week, registering its best weekly gain since March 22. The broader Topix index advanced 2.65 per cent.
The Nikkei hit an all-time high on Thursday, crossing 42,000 points for the first time, and the Topix index hit a record closing high of 2,929.17.
Gains in U.S. megacap growth stocks last week also lifted Japanese technology shares, with SoftBank Group soaring 8.04 per cent and semiconductor testing equipment maker Advantest rising 3.2 per cent.
Conversely, overseas investors pulled back from Japanese bonds for a fourth consecutive week, selling long-term bonds worth a net 228.8 billion yen and short-term instruments totalling 876.9 billion yen, Ministry of Finance data showed.
Meanwhile, Japanese investors snapped a two-week selling streak in overseas debt markets last week. They secured long-term foreign bonds of a net 237.7 billion yen and short-term securities of about 96.6 billion yen.
Japanese investors, meanwhile, withdrew a net 555.6 billion yen out of foreign equities, which was their largest weekly net disposal since May 31.
