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14 Jan 2015
JPY Flow: Weak momentum for the second consecutive month – Nomura
FXStreet (Barcelona) - The Nomura Research Team shares that Japanese capital flows indicate that Japanese investors were net sellers for the second consecutive month, with highest selling seen in bonds as lower global yields kept yield-sensitive investors away.
Key Quotes
“Excluding banks, Japanese investors were net sellers of foreign securities by JPY931bn in December ($7.8bn), for the second month in a row. Their selling was concentrated in foreign bonds, while foreign equity investment has recovered strongly.”
“Lower yields globally have likely discouraged yield-sensitive investors, such as lifers, from adding foreign bond exposure.”
“Retail investors resumed purchasing foreign assets via toshins, after taking profits aggressively in November, while pension funds continued to purchase foreign equities at a relatively high pace.”
“We expect the portfolio shift by pension funds and retail investors to continue this year, while lifers may be waiting for the new fiscal year for now.”
Key Quotes
“Excluding banks, Japanese investors were net sellers of foreign securities by JPY931bn in December ($7.8bn), for the second month in a row. Their selling was concentrated in foreign bonds, while foreign equity investment has recovered strongly.”
“Lower yields globally have likely discouraged yield-sensitive investors, such as lifers, from adding foreign bond exposure.”
“Retail investors resumed purchasing foreign assets via toshins, after taking profits aggressively in November, while pension funds continued to purchase foreign equities at a relatively high pace.”
“We expect the portfolio shift by pension funds and retail investors to continue this year, while lifers may be waiting for the new fiscal year for now.”