12 Nov 2013
Flash: Corporate flows remain Yen negative - Nomura
FXstreet.com (Barcelona) - Corporate-related flows remain negative for the Yen, notes FX Strategist at Nomura, Yujiro Goto.
Key Quotes
"Japanese investors were net buyers of foreign securities in October for the second consecutive month. Excluding bank accounts, whose trades usually have a limited impact on FX, net buying of foreign securities amounted to JPY298bn (USD3.0bn), from JPY190bn in September."
"Pension funds were net buyers of foreign bonds (JPY239bn) for the eighth month in a row, while selling foreign equities at a moderate pace (-JPY83bn)."
"Toshin companies were small net buyers of foreign securities as well (JPY6bn). Lifers were small net sellers of foreign securities at JPY143bn in October. Lifers' selling of foreign bonds has been disappointing, but we still expect lifers to be buyers of foreign bonds going forward as JGB yields remain low."
"The Japanese government will focus financial market reform in its growth strategy, which will encourage Japanese investors to shift from domestic risk-free assets into risky assets. Under the special panel led by Finance Minister Aso, the government is going to consider creating a Japanese version of the Individual Retirement Account (IRA), according to Nikkei."
"Even though the details are not clear yet, Professor Ito today said after the first meeting of the panel that the introduction of the IRA should be one of the options. This new measure could be another boost for retail investment in risky assets including foreign assets. The panel will summarize its report by end-2013."
Key Quotes
"Japanese investors were net buyers of foreign securities in October for the second consecutive month. Excluding bank accounts, whose trades usually have a limited impact on FX, net buying of foreign securities amounted to JPY298bn (USD3.0bn), from JPY190bn in September."
"Pension funds were net buyers of foreign bonds (JPY239bn) for the eighth month in a row, while selling foreign equities at a moderate pace (-JPY83bn)."
"Toshin companies were small net buyers of foreign securities as well (JPY6bn). Lifers were small net sellers of foreign securities at JPY143bn in October. Lifers' selling of foreign bonds has been disappointing, but we still expect lifers to be buyers of foreign bonds going forward as JGB yields remain low."
"The Japanese government will focus financial market reform in its growth strategy, which will encourage Japanese investors to shift from domestic risk-free assets into risky assets. Under the special panel led by Finance Minister Aso, the government is going to consider creating a Japanese version of the Individual Retirement Account (IRA), according to Nikkei."
"Even though the details are not clear yet, Professor Ito today said after the first meeting of the panel that the introduction of the IRA should be one of the options. This new measure could be another boost for retail investment in risky assets including foreign assets. The panel will summarize its report by end-2013."