On Thursday local time, the latest data released by the Japanese Ministry of Finance showed that foreign investors bought a net 1.2 trillion yen (approximately 58.2 billion yuan) of Japanese stocks last week, the largest buying volume since October last year.
Under the enthusiastic support of overseas funds, the Japanese stock market has continued to soar in the new year, breaking new highs in nearly 34 years and performing far better than other major global stock markets. The Nikkei 225 index rose 6.6% last week, the largest weekly increase since March 2022, bringing the index's annual increase to over 25%.
The weekly K-line of the Nikkei 225 index
In fact, foreign investment's enthusiasm for Japanese stocks has been on since last year. According to data released by the Japan Stock Exchange last week, the cumulative net inflow of funds into the Japanese stock market last year was about 6.3 trillion yen (approximately RMB 305.9 billion), the highest amount since at least 2014.
Overseas investors bought a net worth of approximately 3.12 trillion yen (approximately RMB 151.49 billion) of stocks and 3.17 trillion yen of derivatives (approximately RMB 153.92 billion) last year, breaking the three-year selling trend.
At present, both the Tokyo Composite Index and the Nikkei 225 Index are at their highest levels in 34 years, thanks to bullish factors such as the weakening yen, negative interest rates, and efforts by the Tokyo Stock Exchange to improve corporate governance.
Hikaru Yasuda, Chief Equity Strategist at SMBC Nikkei Securities, wrote in a report that as the Nikkei 225 index reaches a historic high in mid year, it may break through 40000 points. As of press release, the Nikkei 225 index rose slightly by 0.15% on Thursday morning, closing at 35531 points.
Yasuda wrote that although the recent rise of the index is similar to the rebound in April June 2023, the momentum is stronger, indicating that overseas pension funds and sovereign funds are engaged in a merger; Quota; Long term game; Quota;.