From Financial Modeling Prep: 2024-12-09 05:27:30

Japanese investors reduced their exposure to foreign equities for the second consecutive month in November 2024, selling around ¥1.1 trillion ($7.4 billion) amid global market caution due to interest rate fluctuations and geopolitical uncertainties. Domestic bond purchases increased, reflecting a shift to safer assets amidst market volatility and changing monetary policies.

Persistent U.S. market volatility, economic slowdown fears, geopolitical risks, and a stronger yen have driven Japanese investors to retreat from overseas equities. Concerns over the Federal Reserve’s interest rate trajectory, political instability, and currency fluctuations have contributed to the shift towards safer domestic bonds.

The pullback by Japanese investors may lead to decreased demand for foreign equities, potentially heightening market volatility. Conversely, the increased investment in domestic bonds could bolster Japan’s financial markets, supporting liquidity in local debt instruments.



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