Japan: Foreign investment via toshins continues – Nomura

FXStreet (Barcelona) – Yujiro Goto, FX Strategists at Nomura, notes that Japanese retail investors have continued to favour foreign securities, marking a 29th week of net purchases of foreign securities, while in the FX space they preferred buying the Asian currency baskets.

Key Quotes

“Japanese retail investors continued to purchase foreign securities via toshins last week, according to NRI, purchasing JPY52bn ($415mn), the same amount purchased the previous week. This marks the 29th week in a row of net purchases of foreign securities.”

“Retail investors bought JPY450bn ($3.6bn) in foreign securities via toshins in May, according to the MOF, and net purchases have continued into June, albeit at a slower pace. They continued selling foreign bonds via toshins (JPY24bn or $190mn), while purchasing foreign equities (JPY19bn or $155mn) and foreign hybrid securities (JPY56bn or $455mn), which suggests they still prefer foreign equities to bonds.”

“Retail investors are estimated to have bought JPY9bn ($70mn) of foreign currencies via currency selection-type toshins last week. They continued to purchase Asian currency baskets (JPY14bn or $110mn), which shows the high popularity of Asian currencies. Newly launched USD denominated Japanese equity toshin supported USD purchases in the currency selection type toshin market last week.”

Yujiro Goto, FX Strategists at Nomura, notes that Japanese retail investors have continued to favour foreign securities, marking a 29th week of net purchases of foreign securities, while in the FX space they preferred buying the Asian currency baskets.

(Market News Provided by FXstreet)