Forex Flash: Weaker yen effecting investor behaviour – BBH
FXstreet.com (Barcelona) - Brown Brothers Harriman analysts have noted that in Japan, the prospect of a weaker Yen appears to be changing foreign investor behaviour, and specifically to favour Japanese stocks over bonds.
They comment that foreign purchases of Japanese stocks in December was JPY1.54 trln, the most in about 7.5 years. Drawing from the weekly MOF data, foreign purchases of Japanese shares has been partly funded by the sales of Japanese bonds. Elsewhere they see that Japanese investment patterns do not appear to have changed. They write, "Japanese investors have as they generally did all last year, reduced pared their foreign equity holdings (using a four week average to smooth out the weekly noise) and have generally bought small amounts of foreign bonds."
They comment that foreign purchases of Japanese stocks in December was JPY1.54 trln, the most in about 7.5 years. Drawing from the weekly MOF data, foreign purchases of Japanese shares has been partly funded by the sales of Japanese bonds. Elsewhere they see that Japanese investment patterns do not appear to have changed. They write, "Japanese investors have as they generally did all last year, reduced pared their foreign equity holdings (using a four week average to smooth out the weekly noise) and have generally bought small amounts of foreign bonds."
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