Foreign investors roil Japanese stock market, nearing record highs

3 years ago by in Travel

5ec7c258c82cca652487b2a4c38f52601 Foreign investors roil Japanese stock market, nearing record highs

Photo by Tenacious Me

Ask anyone who follows the Japanese stock market and they’ll tell you that it is foreign investors that cause any moves in the indexes. Overseas direct investment plays a markedly different game than either institutional or individual investors inside Japan. So the "who" behind the data from the Tokyo Stock Exchange should come as no surprise, it’s the "how much" that raises questions: Foreign investors accounted for 67.4 percent of the action in the market last month, close to the all time high of 69 percent.

But don’t credit the earthquake,tsunami, nuclear accident and any sinister motivations. That’s up just 0.02 percent from March, and is credited by Nikkei to moves by the US Federal Reserve that led to excess liquidity in the hands of US investors, which then regularly place in Japanese stocks.

In the short term, though, market players suggest that turmoil in commodities markets and concern over Europe’s financial state could mean that the fresh money will soon be withdrawn. (NIKKEI)