OUTFLOW FROM JAPAN: Foreigners flee Japanese stocks:
Nikkei has just reported that foreign investors are moving
money out of the country. According to the Tokyo Stock Exchange,
last week foreign funds were net sellers for the third week
consecutively. Why? (1) Uncertainty around corporate tax cuts
persists; (2) Hopes of improved earnings in exporters dwindled
after the yen halted its fall. (3) Discussion on consumption tax
hikes lingers and weighed on investors sentiment.
OUTFLOW FROM THE US: In order to offset the capital
outflows from Japanese equities, Japanese authorities lead
record sales from Treasuries.
According to a recent Reuters note, Japan (and also China)
led a record exodus from US Treasuries in June, with data
showing they accounted for almost all of a record $40.8B of
net foreign selling. Japan trimmed its holdings for a
third straight month to $1.0834T.
Fears of a Fed tapering or a maneuver to offset an outflow
from Japan? Asked about it, a Japanese lawmaker said the fears
of Fed tapering weren't behind the sales.
Àlex FUSTE MOZO