Global Investors Flock to Japanese Stocks Amid Yen Weakness

Foreign capital surged into Japanese stocks as a rally in domestic shares, driven by optimistic corporate earnings and a weak yen, attracted investors. Major benchmarks hit record highs with international investments reaching their highest level since October. In bond markets, both long-term and short-term Japanese securities saw significant foreign interest.

Japanese stocks drew substantial foreign investment for the week ending January 10, bolstered by a domestic rally fueled by positive corporate earnings forecasts and a depreciating yen, according to Japan's Ministry of Finance.

Key equity benchmarks like the Nikkei and Topix achieved record levels, with international investors injecting a net 1.14 trillion yen ($7.20 billion) into Japanese stock markets, marking the largest weekly net influx since October 25.

Both long-term and short-term Japanese bonds saw significant foreign purchases, with bond yields reaching levels not seen since February 1999, further highlighting the strong foreign interest in Japan's financial assets amidst a weakening yen.

(With inputs from agencies.)