Sticky Money Stays in Japan Stocks While Short-Term Players Exit
- Heavy selling in futures reflects some short-term pessimism
- Cash equity buying remains strong among foreign investors
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When the Japanese stock market endured its worst selloff in years earlier this month, foreign investors were selling futures heavily but buying cash equities. To some, that is a good sign that stickier money hasn’t lost confidence in the market.
Foreign investors sold ¥777 billion ($5.28 billion) in Japanese equities, cash and futures combined in the first week of August. Most of that was in futures — the most liquid instrument in the market — with some ¥1.273 trillion sold, the largest amount since October. But foreign investors also turned into net buyers in cash equities the same week, buying almost ¥500 billion of them, the most in four months.