15 Jan 2014
Flash: Japanese flow becoming more JPY negative - Nomura
FXstreet.com (Bali) - Based on key Japanese investors flow, the sentiment towards the JPY continues to deteriorate, according to Nomura.
Key Quotes
"Japanese investors were net sellers of foreign securities in December for the first time in four months. However, most of selling came from toshin companies, whose flow was significantly influenced by profit taking by retail investors before the capital gain tax hike in January."
"After excluding toshin companies, we see positive signs in Japanese foreign investment: the largest foreign bond buying by lifers since April and a slowdown in foreign asset liquidation by pension funds. As toshin momentum has already improved significantly in January, partly thanks to the introduction of NISA, key investors flow is now becoming more JPY negative, in our view. Current account deficits and high FDI outflows also suggest Japanese corporate flow remains JPY negative as well."
Key Quotes
"Japanese investors were net sellers of foreign securities in December for the first time in four months. However, most of selling came from toshin companies, whose flow was significantly influenced by profit taking by retail investors before the capital gain tax hike in January."
"After excluding toshin companies, we see positive signs in Japanese foreign investment: the largest foreign bond buying by lifers since April and a slowdown in foreign asset liquidation by pension funds. As toshin momentum has already improved significantly in January, partly thanks to the introduction of NISA, key investors flow is now becoming more JPY negative, in our view. Current account deficits and high FDI outflows also suggest Japanese corporate flow remains JPY negative as well."