Japanese Investors Sell Offshore Stocks for Second Consecutive Month in November

Forex - Japanese investors sold overseas stocks for the second consecutive month in November to take advantage of strong gains in global equities, especially as U.S. stocks reached record levels. According to data from the Japanese Ministry of Finance, these investors sold 1.22 trillion yen ($8.12 billion) in overseas stocks last month, following a net withdrawal of approximately 2.37 trillion yen the previous month. Japanese trust accounts recorded their third consecutive month of net sales, divesting a net 1.33 trillion yen worth of foreign stocks. Meanwhile, investment partnership management companies bought stocks worth 550.5 billion yen, the highest level in the last three months. Barclays noted that the strong performance of U.S. stocks prompted trust accounts to rebalance their portfolios, while the intense buying by investment partnerships was influenced by renewed interest in new investment flows linked to NISA.