20 Mar 2015
Japan investment flows remain negative – Nomura
FXStreet (Barcelona) - Yujiro Goto, FX Strategist at Nomura, comments that strong foreign equity investment momentum continues in Japan, with M&A flows suggesting that JPY negative sentiment still remains.
Key Quotes
“Japanese investment in foreign securities remained strong last week, according to the MOF. Japanese investors bought JPY511bn ($4.3bn) of foreign equities, for the 17th week in a row, while purchasing JPY551bn ($4.6bn) of foreign bonds, for the eighth consecutive week.”
“This was the third-largest net weekly purchase of foreign equity investment last week ever, suggesting very strong foreign equity investment momentum continues.”
“We continue to see Japanese purchases of foreign companies, and foreign M&A flows remain JPY negative too. Even though the Japanese trade balance has been improving, investment flows remain JPY negative, in our view.”
“While USD/JPY depreciated after the FOMC meeting, as USD weakened broadly, we believe a gradual USD/JPY appreciation is still likely this year.”
“There was net buying of JPY39bn (USD320mn) in foreign currency-denominated toshins on 17 March, according to NRI, the 61st consecutive business day of net purchases.”
Key Quotes
“Japanese investment in foreign securities remained strong last week, according to the MOF. Japanese investors bought JPY511bn ($4.3bn) of foreign equities, for the 17th week in a row, while purchasing JPY551bn ($4.6bn) of foreign bonds, for the eighth consecutive week.”
“This was the third-largest net weekly purchase of foreign equity investment last week ever, suggesting very strong foreign equity investment momentum continues.”
“We continue to see Japanese purchases of foreign companies, and foreign M&A flows remain JPY negative too. Even though the Japanese trade balance has been improving, investment flows remain JPY negative, in our view.”
“While USD/JPY depreciated after the FOMC meeting, as USD weakened broadly, we believe a gradual USD/JPY appreciation is still likely this year.”
“There was net buying of JPY39bn (USD320mn) in foreign currency-denominated toshins on 17 March, according to NRI, the 61st consecutive business day of net purchases.”