Foreign Buys of Japan Stocks at Highest Since March 2011

Net purchases of Japanese stocks by Overseas investors rose last week to the highest since last year’s record earthquake and tsunami, according to the Tokyo Stock Exchange.

Foreign investors were net buyers of Japanese stocks last week for the fifth consecutive week, purchasing a total of 462.9 billion yen ($5.5 billion) more shares than they sold on the Tokyo, Osaka and Nagoya bourses, the exchange said. That’s the most since the week ending March 18, 2011, when net purchases were 955.2 billion yen.

The Nikkei 225 Stock Average (NKY) has gained 16 percent since Nov. 14 when the previous government said they would call elections. The Liberal Democratic was returned to power in a Dec. 16 poll on pledges to boost government spending and press the Bank of Japan for more monetary stimulus.

“Foreign investors are starting to expect more aggressive policies and economic stimulus measures in Japan,” said Jun Yunoki, an equity analyst at Nomura Holdings Inc. “Foreign investors’ risk tolerence is increasing and that’s being directed with capital inflows to Japanese stocks.”

To contact the reporter on this story: Satoshi Kawano in Tokyo at skawano1@bloomberg.net

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net

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