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Japanese investors net buyers of USD-denominated assets in November – Nomura

FXStreet (Barcelona) - The Research Team at Nomura note that based on November BOP data, Japanese investors were net buyers of USD, EUR, and GBP-denominated securities, while selling AUD-denominated securities.

Key Quotes

“They bought JPY769bn ($6.5bn) of USD-denominated securities, for the first time in two months. They continued purchasing EUR-denominated securities for the third month in a row, but the pace of net purchases slowed to JPY379bn ($3.2bn) from JPY500bn the previous month.”

“They bought French bonds (JPY506bn) aggressively, after selling in October (JPY553bn). Japanese investors also purchased Netherlands bonds (JPY125bn), Irish bonds (JPY737bn), while selling German bonds (JPY268bn).”

“In contrast with the slowdown in the investment in EUR-denominated securities, Japanese investors accelerated investment in GBP-denominated securities to JPY401bn ($3.4bn), the biggest amount since September 2011.”

“Japanese investors sold AUD-denominated securities, to the tune of JPY156bn ($1.3bn), for the first time since September 2013. Retail investors' profit-taking in toshins and foreign currency-denominated insurance products may have led to weaker flows into AUD-denominated securities in November.”

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