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Hedge Funds Bet Billions on Hopes of an Abe Win

  • Buying began as Abe’s ratings rose, boosting odds of election
  • Equities tend to climb in Japan after elections are announced
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Abe Seeks Election Date Approval

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In the two weeks before Prime Minister Shinzo Abe called a snap election, foreign investors using the futures market -- which are often hedge funds -- suddenly turned hugely positive on Japanese shares.

Foreigners bought a net 2.1 trillion yen ($19 billion) of Japanese stock futures from Sept. 11 to 22, according to data released by Osaka Exchange Inc. on Thursday and last week. That came after they sold more than $7 billion in cash equities this year through mid-September.