10 Jun 2013
Flash: Japanese net sellers of foreign securities - Nomura
FXstreet.com (Barcelona) - Nomura strategist Yujiro Goto notes that Japanese investors were net sellers of foreign securities to the tune of JPY3.0trn (USD30bn) in May.
He notes that there was net selling for the fifth month in a row and the pace of selling accelerated from the previous month (JPY2.3trn). Further, a large part of the selling came from the banking sector (JPY2.4trn), whose foreign investment does not usually have FX risks. He writes, “Thus, the FX impact of large selling of foreign securities in May was likely to have been smaller than the face amount suggests.”
He notes that there was net selling for the fifth month in a row and the pace of selling accelerated from the previous month (JPY2.3trn). Further, a large part of the selling came from the banking sector (JPY2.4trn), whose foreign investment does not usually have FX risks. He writes, “Thus, the FX impact of large selling of foreign securities in May was likely to have been smaller than the face amount suggests.”