10 Mar 2015
Japanese retail investment in foreign assets accelerates – Nomura
FXStreet (Barcelona) - Research Analysts at Nomura, note that Japanese retail investment in foreign assets remained robust, with investors remaining net buyers, purchasing JPY 2675 bn ($22.3bn) worth of foreign securities.
Key Quotes
“Japanese investors bought a net JPY2675bn ($22.3bn) in foreign securities.”
“If we exclude the bank accounts that carry out FX-neutral short-term trades, net buying amounted to JPY1721bn ($14.5bn), maintaining the strong pace of foreign investment in January (JPY1801bn).”
“Japanese investors took profits from their foreign portfolio exposures on the weak JPY in November and December 2014, but they have been net buyers for two consecutive months.”
“They remained strong net buyers of foreign equities, which likely have a much lower currency hedging ratio than foreign bonds, at JPY1384bn ($11.5bn).”
“In addition, Japanese investors also accelerated foreign long-term bond investment to JPY1306bn ($10.9bn), the biggest monthly net purchases in three months.”
“Even though the trade deficits have begun to narrow on the back of cheaper crude oil prices, we believe that aggressive foreign investment should support the underlying weak JPY trend.”
Key Quotes
“Japanese investors bought a net JPY2675bn ($22.3bn) in foreign securities.”
“If we exclude the bank accounts that carry out FX-neutral short-term trades, net buying amounted to JPY1721bn ($14.5bn), maintaining the strong pace of foreign investment in January (JPY1801bn).”
“Japanese investors took profits from their foreign portfolio exposures on the weak JPY in November and December 2014, but they have been net buyers for two consecutive months.”
“They remained strong net buyers of foreign equities, which likely have a much lower currency hedging ratio than foreign bonds, at JPY1384bn ($11.5bn).”
“In addition, Japanese investors also accelerated foreign long-term bond investment to JPY1306bn ($10.9bn), the biggest monthly net purchases in three months.”
“Even though the trade deficits have begun to narrow on the back of cheaper crude oil prices, we believe that aggressive foreign investment should support the underlying weak JPY trend.”