Japanese Foriegn Investment continues to decline, sees ¥382.9B foreign bond issuance

Foreign Bond Investment in Japan saw inflows of ¥382.9 billion for the week ended January 26, up from the previous week's outflows of ¥-43.5 billion (revised up from ¥-48.0 billion), but still well below January's peak inflows of ¥1.689 trillion.

Foreign Investment in Japanese Stocks also rebounded for the week ended January 26, climbing to ¥720.3 billion versus the previous week's ¥287 billion (revised slightly from ¥286.7 billion), but likewise down sharply from January's peak of ¥1.202 trillion.

Market reaction

USD/JPY caught a slight bid to push the pair back into the 147.00 handle heading into the Thursday market session after USD/JPY traders got a workout thanks to Wednesday's outing from the US Federal Reserve (Fed) and Fed Chairman Jerome Powell.

About Foreign Investment in Japanese Stocks & Bonds

Securities investment, released by Ministry of Finance, referrers to bonds issued in a domestic market by a foreign entity in the domestic market’s currency. The report is released by the Ministry of Finance, detailing the flows from the public sector excluding Bank of Japan. The net data shows the difference of capital inflow and outflow. A positive difference indicates net sales of foreign securities by residents (capital inflow), and a negative difference indicates net purchases of foreign securities by residents (capital outflow).