Record Foreign Investments Surge into Japanese Stocks Amid US-Iran Optimism
Global Market Updates | Japan stocks draw record foreign inflows on optimism over US-Iran resolution
The Economic TimesImage: The Economic Times
Japanese stocks experienced record foreign inflows of 3.94 trillion yen (approximately $24.87 billion) in the week ending April 11, driven by optimism over potential negotiations to resolve the Iran war. The Nikkei 225 index reached a new high of 59,569.25, reflecting a 16.6% increase in April.
- 01Foreign investors purchased a record 3.94 trillion yen worth of Japanese stocks in a week.
- 02The Nikkei 225 index hit a new record of 59,569.25.
- 03Recent inflows reversed a previous record net sale of 7.37 trillion yen in March.
- 04Japanese long-term bonds attracted 707.2 billion yen in foreign investments.
- 05Japanese investors also resumed purchasing foreign long-term bonds after a four-week selloff.
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In the week ending April 11, Japanese stocks saw unprecedented foreign investment, with net purchases totaling 3.94 trillion yen (around $24.87 billion), marking the largest weekly inflow on record since January 2005, according to Japan's Ministry of Finance. This surge in demand was fueled by optimism surrounding potential negotiations to resolve the ongoing Iran war, particularly after positive signals from the Trump administration. The Nikkei 225 index, reflecting this bullish sentiment, reached a new peak of 59,569.25, up 16.6% in April alone. Over the past two weeks, foreign investors have injected approximately 6.9 trillion yen into Japanese equities, significantly reversing the previous month's record net sales of 7.37 trillion yen. Seasonal trends also played a role, as investors typically shift holdings offshore in March before returning in April for voting rights and dividends. Additionally, Japanese long-term bonds attracted a net inflow of 707.2 billion yen, while Japanese investments in foreign long-term bonds resumed after a four-week decline.
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The surge in foreign investments could enhance market liquidity and potentially lead to increased job creation and economic growth in Japan.
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