4 Dec 2014
Retail investors in Japan resumed purchasing foreign assets – Nomura
FXStreet (Barcelona) - According to the Research Team at Nomura, Retails investors bought foreign assets via toshins last week, for the first time in four weeks, after selling a total of $5.2bn worth in the previous three weeks.
Key Quotes
“Retail investors bought foreign assets via toshins last week, for the first time in four weeks, according to NRI. They bought JPY83bn ($0.0.7bn) of foreign securities via toshins, after selling a total of JPY608bn ($5.2bn) in the previous three weeks.”
“After the announcement of additional easing by the BOJ and the new target portfolio of the GPIF on 31 October, retail investors took profits aggressively amid JPY weakness. However, the pace of profit-taking is now slowing, and purchases of foreign assets have restarted.”
“Although toshin momentum slowed recently owing to the aggressive profit-taking, we do not expect weak momentum to continue. Net purchases of domestic and foreign assets via toshins last week suggest strong demand for risky assets among retail investors.”
“In the currency selection-type toshin market, retail investors are estimated to be net sellers to the tune of JPY5bn ($40mn), for the fifth week in a row. However, the pace of net selling slowed to the lowest in five weeks. They sold JPY9bn ($0.1bn) of USD, while also selling AUD (-JPY2bn), MXN (-JPY2bn), and BLR (-JPY2bn).”
Key Quotes
“Retail investors bought foreign assets via toshins last week, for the first time in four weeks, according to NRI. They bought JPY83bn ($0.0.7bn) of foreign securities via toshins, after selling a total of JPY608bn ($5.2bn) in the previous three weeks.”
“After the announcement of additional easing by the BOJ and the new target portfolio of the GPIF on 31 October, retail investors took profits aggressively amid JPY weakness. However, the pace of profit-taking is now slowing, and purchases of foreign assets have restarted.”
“Although toshin momentum slowed recently owing to the aggressive profit-taking, we do not expect weak momentum to continue. Net purchases of domestic and foreign assets via toshins last week suggest strong demand for risky assets among retail investors.”
“In the currency selection-type toshin market, retail investors are estimated to be net sellers to the tune of JPY5bn ($40mn), for the fifth week in a row. However, the pace of net selling slowed to the lowest in five weeks. They sold JPY9bn ($0.1bn) of USD, while also selling AUD (-JPY2bn), MXN (-JPY2bn), and BLR (-JPY2bn).”