Foreign Investors Pull Back on Japanese Stocks Amid Global Economic Pressures

During the week of September 12, foreign investors sold off a significant amount of Japanese stocks, driven by escalating oil prices and global interest rate hike expectations. The outflow reached 1.52 trillion yen, marking the largest since June 27. However, foreign investors increased their holdings in Japanese long-term bonds.

Foreign investors withdrew heavily from Japanese stocks during the week ending September 12, as soaring oil prices and anticipated rate hikes by the U.S. and Japan stoked economic fears.

Outflows totaled a net 1.52 trillion yen, their largest since June 27, according to the Ministry of Finance. The Nikkei 225 dipped 1.55% during this period, impacted by an 8.65% surge in oil prices. Meanwhile, Brent crude reached a four-month peak at $109.97 per barrel.

Despite the stock sell-off, foreign investors made significant purchases of Japanese long-term bonds, indicating a shift in investment strategy amid fluctuating market conditions.