Foreign Investors Exit Japanese Stocks in Significant Volume, Offloading Tech Holdings

Deep News07-02 12:40

Overseas investors sold Japanese shares at the fastest pace in approximately three months during the week ending June 27, capitalizing on elevated valuations following a significant quarterly rally to take profits from technology stocks. Growing concerns about debt-financed artificial intelligence spending also contributed to the sentiment.

Data released by Japan's Ministry of Finance on Thursday revealed that foreign investors recorded a net withdrawal of 1.82 trillion yen (approximately $112 billion) from Japanese equities that week. This marks the largest weekly net selling amount since March 28.

Following a robust 37.21% surge in the Nikkei 225 index last quarter, investors moved to secure gains from technology stocks perceived as overbought. Concurrently, foreign investors extended their net selling of Japanese long-term bonds for a fourth consecutive week, with total outflows amounting to 493.7 billion yen. They also offloaded 2.43 trillion yen worth of short-term treasury bills.

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