Japanese stocks surge as overseas investors pile in
Billionaires join the buying spree
Overseas investors have piled into Japanese stocks in recent days, driving the market to a five-day winning streak.
According to data from the Ministry of Finance, foreign investors bought a net 783 billion yen (US$7.2 billion) of Japanese stocks during the five days from Monday to Friday. This was the largest net buying by overseas investors in a five-day period since March 2020.
The buying spree has been driven by a number of factors, including the Bank of Japan's decision to keep interest rates ultra-low, the weakening of the yen, and the positive performance of Japanese companies.
Warren Buffett's Berkshire Hathaway is one of the most high-profile investors to have recently added to their holdings in Japanese stocks. The company said on Monday that it had increased its stake in five Japanese trading companies, including Mitsubishi Corp., Mitsui & Co., and Sumitomo Corp.
Other major investors who have recently bought Japanese stocks include George Soros and Bill Gross.
The influx of foreign investment has helped to push up the Japanese stock market in recent days. The Nikkei 225 index has gained more than 5% over the past five days.
Analysts say that the buying spree is likely to continue in the coming weeks. The Bank of Japan is expected to keep interest rates low for the foreseeable future, and the yen is expected to continue to weaken.
This, combined with the positive performance of Japanese companies, is likely to make Japanese stocks an attractive investment for foreign investors.
Komentar