Key facts
- Japanese investors sold a net 209.3 billion yen of foreign short-term bills in the week ended October 31, ministry data showed.
- Foreign investors bought 1.48 trillion yen of Japanese long-term bonds and 874.7 billion yen of short-term bills.
- Japanese investors bought a net 1.08 trillion yen of foreign stocks, a third straight week of net purchases.
- Foreign investors bought a net 1.13 trillion yen of Japanese stocks, a second consecutive week of net buying.
- Japanese investors have withdrawn a net 4.38 billion yen from foreign fixed income so far in 2026, the largest outflow for the period since 2022.
Japanese investors bought a net 1.31 trillion yen ($8.31 billion) of foreign long-term bonds in the week ended October 31, Japan's Ministry of Finance data showed, the first net purchase in seven weeks. They had withdrawn a combined 3.51 trillion yen over the preceding six-week selling streak.
The same data showed Japanese investors sold a net 209.3 billion yen of foreign short-term bills. Foreign investors bought 2.36 trillion yen of Japanese bonds, the largest amount since March 21, split between 1.48 trillion yen of long-term bonds and 874.7 billion yen of short-term bills.
Reuters reported that the shift toward foreign bonds followed a selloff in technology stocks and the Federal Reserve's decision to hold interest rates steady. The US tech-heavy Nasdaq Composite Index fell 2% in the week before October 31 after Amazon.com and Alphabet reported sharp cash outflows and Intel warned it would burn cash in 2026, Reuters said.
The Nasdaq fell a further 5.52% on Thursday after Democrats won control of the US Congress, Reuters reported, citing fears of tougher AI regulation. The Nikkei has lost about 6.14% so far in the week, according to the report.
In equities, Japanese investors bought a net 1.08 trillion yen of foreign stocks in the week ended October 31, a third consecutive week of net purchases. Foreign investors bought a net 1.13 trillion yen of Japanese stocks, remaining net buyers for a second consecutive week.
Despite the weekly inflow, Japanese investors have withdrawn a net 4.38 billion yen from foreign fixed-income instruments so far in 2026, the largest outflow for the same period since 2022, the ministry data showed.