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Japan demand for foreign assets strong, even in the face of year-end repatriation

International Transactions in Securities data from Japan's Ministry of Finance is due today at 2350GMT

At this time of year, Japanese fiscal year end (March 31), we expect to see strong repatriation flows of funds into Japan.

Last week, though, in this data we saw very strong demand for foreign stock and bonds, continuing what we have seen over previous weeks:

  • Japanese investors bought Y314.7bn of foreign stocks in last week's data (week ended March 18)
  • Japanese purchases of foreign bonds (Y2276.8bn) for that week were the highest recorded

The flows of capital out of Japan like this should weigh on the yen (to the extent the flow is not hedged), but the limited rallies in USD/JPY suggest otherwise.

Something to watch.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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