Japanese Equities Face Second Week of Sell-Off Amid Yen Interventions

Foreign investors have sold Japanese equities for the second week as yen support measures affected their interest. The Ministry of Finance reported net sales of 368.5 billion yen. Despite a stronger yen and decreased purchasing power for new stocks, the Nikkei index rose 1.93% last week.

Foreign investors continued to divest from Japanese equities for a second consecutive week, driven by concerns over potential measures to bolster the yen. Between the latest sell-off and prior week's, net sales tallied up to 368.5 billion yen, according to Japan's Ministry of Finance data.

Amid these financial headwinds, Japan's Finance Ministry revealed that Tokyo and Washington had collectively intervened in the yen-buying strategy, ensuring they remain ready to take further action. Last week saw the yen climbing to a nearly three-month high of 155.21 against the dollar, though it later eased back to 159.43 per dollar.

While a stronger yen boosts the dollar value of foreign investments in Japan, it similarly diminishes investor buying power for future stock acquisitions. Nonetheless, the Nikkei index experienced a 1.93% uplift, buoyed by movements in U.S. technology stocks. In contrast, Japanese long-term bonds encountered modest outflows, while short-term bills attracted considerable foreign investment.