Bond yield surge drives foreign investors to sell Japanese stocks
Foreign investors were net sellers of Japanese stocks worth 764.1 billion yen (US$4.80 billion), the largest weekly outflow since June 27.
Japanese government bond yields surged to a three-decade high of 2.945% in the week ending August 22, prompting foreign investors to sell Japanese equities in the largest weekly outflow since June 27, according to Ministry of Finance data. Concerns over rising sovereign debt and persistent inflation in the United States, Europe, and Japan drove up long-term borrowing costs globally, impacting technology and growth shares.
Tech stocks Tokyo Electron and Kioxia Holdings plummeted by 8.19% and 5.89% respectively, while SoftBank Group lost 8.43%. The broader Nikkei index dropped 3.93% last week. Despite a net purchase of 435.2 billion yen in Japanese long-term bonds, foreign investors continued to pull out, selling a net 764.1 billion yen worth of Japanese stocks, the highest amount in nearly two months.
Japanese investors also offloaded bonds and bills, marking the largest combined weekly net sales since April 4, including a record 869 billion yen in overseas equities, the biggest since June 6.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- Bond yield surge drives foreign investors to sell Japanese stocks freemalaysiatoday.com
- Japanese government bonds could get a boost from retail investors japantimes.co.jp
