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10 Feb 2015
Japan: Investment flows remain JPY negative - Nomura
FXStreet (Bali) - January’s MOF international capital flow data and December’s BOP figures saw the biggest foreign equity investment ever by Japan, suggesting that investment flows remain JPY negative.
Key Quotes
"Japanese investment in foreign securities recovered strongly in January. They were especially aggressive net buyers of foreign equities, with the biggest monthly net purchases ever. Both pension funds and retail investors were major buyers of foreign equities."
"As their hedge ratios for foreign equity investment are very low, the acceleration in foreign equity investment is supporting JPY weakness."
"Life insurance companies also resumed foreign bond investment, albeit at a moderate pace. Although the trade balance is improving, owing to lower oil prices, a strong recovery in foreign portfolio investment suggests investment flows remain JPY negative."
Key Quotes
"Japanese investment in foreign securities recovered strongly in January. They were especially aggressive net buyers of foreign equities, with the biggest monthly net purchases ever. Both pension funds and retail investors were major buyers of foreign equities."
"As their hedge ratios for foreign equity investment are very low, the acceleration in foreign equity investment is supporting JPY weakness."
"Life insurance companies also resumed foreign bond investment, albeit at a moderate pace. Although the trade balance is improving, owing to lower oil prices, a strong recovery in foreign portfolio investment suggests investment flows remain JPY negative."