Japanese investors bought $14 billion of overseas stocks in March, most since US tariff shock

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Japanese investors bought $14 billion of overseas stocks in March, most since US tariff shock.

stock :: 3hrs ago :: source - Reuters

By Reuters

(Reuters) - Japanese investors invested the most in foreign equities in nearly a year in March, as the recent weakness in the yen and the relatively cheaper pricing of equities due to ‌the Middle East war boosted investor appetite.

According to Japan's Ministry of Finance, local investors net acquired foreign equities worth 2.22 trillion yen ($14.04 billion). It was their largest monthly net purchase since the United States' "Liberation Day" tariff announcements in April 2025, when they bought stocks worth 3.27 trillion yen.

Japanese investments in overseas assets in billion JPY

"New NISA (Nippon ⁠Individual Savings Account) flows drove foreign equity buying," analysts at Barclays said in a note.

NISA is a Japanese government tax-free stock investment programme for individuals that aims to turn household cash worth trillions of yen into stock market investments.

The local investors also sold 4.12 trillion yen worth of foreign bonds in their biggest monthly net sale since the 4.13 trillion yen net divestment in October 2024.

Trust accounts bought roughly 1.3 trillion yen worth ‌of ⁠foreign stocks last month, but offloaded long-term bonds of a net 601.4 billion yen.

Investment trust management companies and banking accounts, meanwhile, invested 828.3 billion yen and 226.3 billion yen, respectively, into foreign stocks.

A separate set of data from the Bank ⁠of Japan showed that Japanese investors divested a net 3.42 trillion yen worth of U.S. bonds in February, the most for a month since June 2022.

They ⁠also shed 173.3 billion yen worth of European bonds that month.

They sold French and German bonds worth 270.14 billion yen and 131.73 billion ⁠yen, respectively, but added a net 158.07 billion yen of Italian bonds during that period.