Analysts at Nomura explained that Japanese investors’ foreign portfolio investment activity remained strong in November.
Key Quotes:
"The pace of foreign portfolio purchases slowed from the previous month, but foreign investment momentum remains strong. Excluding the banking sector, whose foreign investment tends to be FX-neutral, Japanese investors were net buyers of foreign securities to the tune of JPY1562bn ($12.8bn), exceeding JPY1trn per month for the fifth month in a row.
Pension funds, life insurance companies, and toshin companies were all net buyers of foreign securities again in November, albeit at a slower pace than in October.
October BoP data continue to suggest that Japanese investors have been
investing mostly in USD-denominated securities. More than 80% of foreign portfolio investment was in USD securities, suggesting USD should continue to benefit the most from Japanese investors’ strong foreign portfolio investment."
Key Quotes:
"The pace of foreign portfolio purchases slowed from the previous month, but foreign investment momentum remains strong. Excluding the banking sector, whose foreign investment tends to be FX-neutral, Japanese investors were net buyers of foreign securities to the tune of JPY1562bn ($12.8bn), exceeding JPY1trn per month for the fifth month in a row.
Pension funds, life insurance companies, and toshin companies were all net buyers of foreign securities again in November, albeit at a slower pace than in October.
October BoP data continue to suggest that Japanese investors have been
investing mostly in USD-denominated securities. More than 80% of foreign portfolio investment was in USD securities, suggesting USD should continue to benefit the most from Japanese investors’ strong foreign portfolio investment."
