Japanese stocks surge as US-China trade talks, soft yen attract foreign inflows

Al Etihad

7 hours ago

19 June 2025 10:30
TOKYO (REUTERS)Japanese stocks attracted the largest foreign inflow in four-weeks in the week ended June 14 on optimism over progress in US-China trade talks and a softer yen, which helped ease concerns on exporters' earnings.Data from the finance ministry showed that net foreign purchases of Japanese stocks last week were at 473.4 billion yen ($3.26 billion), which also marked the 11th successive week of foreign inflow into the equity market.Japanese stocks have so far received approximately 7.34 trillion yen worth of cross-border inflows this quarter, keeping them on track to draw the largest quarterly sum in two years.The Nikkei share average reached a four-month high of 38,885.15 on Tuesday amid hopes of progress in corporate reforms.A Bank of America's Asia fund manager survey this week showed that Japan was its most favoured market in the region.Meanwhile, safe haven demand following an escalation in tensions in the Middle East boosted purchase of Japanese government bonds.Foreigners bought 434.5 billion yen worth of long-term Japanese bonds, their third weekly net purchase in a row. They also pumped in a net 1.03 billion yen into short-term bills, the biggest amount in eight weeks.At the same time, Japanese sales in foreign equities eased to a five-week low of 84.5 billion yen during the week.Japanese investors, however, snapped up a robust 1.57 trillion yen worth of long-term foreign bonds in their largest weekly net purchase since May 17.
They also added a minor 15.6 billion yen worth of short-term instruments. ($1 = 145.0600 yen)