Foreign ownership of Japan stocks hits record for third year

Key facts

• Overseas investors held a record share of Japanese stocks in fiscal 2025.
• This is the third consecutive year that foreign ownership has set a new record.
• The increase was most notable in AI-related companies.
• Companies targeted by activist investors also saw substantial foreign investment.

The share of Japanese stocks held by overseas investors reached a new record for the third consecutive year in fiscal 2025. This trend was particularly driven by increased investment in AI-related companies and those targeted by activist investors. The improved corporate governance in Japan has been drawing the attention of these investors, contributing to the sustained inflow of foreign capital.