(Reuters) – Japanese traders aggressively divested their international asset holdings within the week to Nov. 2 on warning forward of the U.S. presidential election, whereas the current downtrend within the yen additionally prompted them to lock in earnings.
In line with Ministry of Finance knowledge, Japanese traders withdrew a strong 4.46 trillion yen ($29.22 billion) and 1.17 trillion yen respectively from international long-term bonds and equities, registering a fourth consecutive week of internet gross sales in each segments.
Republican Donald Trump was elected U.S. president on Tuesday with unexpectedly robust assist. Betting markets had favoured a Trump win earlier than the result was introduced, however polls stated it could be an in depth contest.
A pointy decline within the yen to date within the fourth quarter, additionally prompted Japanese traders to lock in earnings.
Japanese traders acquired about 2.02 trillion yen of international shares and 5.11 trillion yen of long-term bonds within the September quarter because the yen rallied about 11.98% towards the greenback throughout that interval. The yen has to date shed about 6.14% this quarter, creating profit-taking alternatives overseas.
Concurrently, Japanese shares gained about 139.4 billion yen of international inflows in the course of the week in a sixth successive week of internet purchases.
Foreigners, nonetheless, bought a internet 42.6 billion yen of long-term Japanese bonds final week following 277.9 billion yen of internet purchases every week earlier. Japanese short-term payments, in the meantime, gained 23.3 billion yen of international inflows.
($1 = 152.6400 yen)
