Japan Stock Investment by Foreigners

Info

History

Chart

Impact:

Low

Source: Ministry of Finance, Japan

Next Release:

Date:

Period: Jun/28

What Does It Measure?

Japan's Stock Investment by Foreigners measures the net inflow or outflow of investments in Japanese equities by foreign investors. The primary focus is on assessing international sentiment towards the Japanese stock market, key indicators include the volume of foreign purchases and sales of Japanese stocks, with a rising trend indicating increased confidence in the Japanese economy and market, while a decline highlights potential worries.

Frequency

This data is typically released monthly, providing preliminary estimates that are subject to revision, with findings usually published around the 10th of the following month.

Why Do Traders Care?

Traders pay close attention to foreign stock investment in Japan as it reflects global confidence in the Japanese economy and can influence demand for the Japanese yen, Japanese equities, and overall market sentiment. A significant increase in foreign investment is generally bullish for stocks, whereas a decrease may lead to bearish trends across currencies and equities.

What Is It Derived From?

The measure is derived from a combination of reports from financial exchanges in Japan and surveys of foreign investment activity. This involves tracking the purchases and sales of stocks by foreign entities in addition to net changes in ownership.

Description

The data typically distinguishes between foreign investments in stocks versus domestic trading volumes and identifies trends over time, helping to understand shifting dynamics in global investment patterns. Additionally, the reported figures may be adjusted to reflect discrepancies from preliminary estimates and provide a clearer picture of actual investment behavior.

Additional Notes

This indicator serves as a leading measure of market sentiment, as increased foreign investment can signal confidence in Japan’s economic outlook and likely changes in domestic market activity. Furthermore, it provides insight into broader economic trends and variations in investor interest relative to other major economies.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for JPY, Bullish for Stocks. Lower than expected: Bearish for JPY, Bearish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Time	Actual	Forecast	Previous	Surprise