Analysts at Nomura explained that Japanese investment in foreign securities continued in July, even amid increased uncertainty on EM economies, especially Turkey.
Key Quotes:
“Although banks likely took profit on their exposure to foreign bonds, other investor types – lifers, toshin companies and pension funds – were all net buyers of foreign securities in August. In July, Japanese investors were net buyers of Italian bonds for the first time in three months. Their demand for euro area bonds remains high, despite the Italian market turmoil in May. We expect Japanese investment in foreign assets to remain high, supporting yen-crosses into year-end.”
Share
