Japanese investors sold overseas stocks for a second consecutive month in November as they sought to capitalize on robust gains in global equities, particularly as U.S. stocks reached record highs.
According to data from Japan's Finance Ministry, these investors' net sales of overseas stocks totaled ¥1.22 trillion last month, following about ¥2.37 trillion worth of net withdrawals in the prior month.
Japanese trust accounts divested foreign stocks worth a net ¥1.33 trillion, their third monthly net sales in a row. Investment trust management companies, meanwhile, purchased ¥550.5 billion worth of shares, the highest in three months.
Barclays said trust accounts experienced significant net sales, likely prompted by the need to rebalance portfolios following a strong U.S. equity performance, while investment trusts' heavy purchases were likely influenced by renewed interest in new Nippon Individual Savings Account-linked investment flows.
NISA is a Japanese government tax-free stock investment program for individuals, which aims to turn the trillions of yen held in cash by households into investments in stock markets.
According to data from the Bank of Japan, Japanese investors had sold a net ¥1.33 trillion worth of U.S. equities in the year up to October.
They also ditched a net ¥412 billion and ¥162.2 billion worth of European and British stocks in the same period.
Meanwhile, local investors sold a net ¥432.8 billion worth of debt securities in November, extending net sales into a second successive month, Finance Ministry data showed.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.