Foreign Investors Impact on Japanese Stock Decline

Foreign Investors' Influence on Japanese Stock Market

Foreign investors play a significant role in the Japanese stock market, accounting for 70% of the trading value. Recently, these investors have been selling Japanese stocks, causing a noticeable decline in share prices since early July. Initially, they bought approximately JPY 2.9 trillion (around $20 billion) in Japanese equities from the start of 2024 until mid-July. However, the trend reversed over the last three weeks, with investors becoming net sellers, offloading JPY 40 billion ($275 million) year-to-date by August 2.