Rally Seen For Japan Stocks After Europe Investor Outflows Surge
- Reversal in European sales of Japan shares should come ‘soon’
- Investors pulled most on record from Japan funds, in EPFR data
This article is for subscribers only.
Japanese equities may be primed to rally, Societe Generale SA analysts say, citing a 15-year pattern that looks at European investor flows.
A surge in outflows from Europe-based funds has reached an extreme level that’s historically preceded a rebound in Japanese shares, according to research from the French bank. Net outflows are now more than two standard deviations from the mean, it showed.