Benefiting from a stronger yen and investor optimism regarding Prime Minister Sanae Takaichi's stimulus measures, the Nikkei 225 index has risen approximately 30% this year, far exceeding the S&P 500's 14% gain. Goldman Sachs It is believed that foreign capital inflows will further boost Japanese stocks, although short-term consolidation may occur .
Goldman Sachs recently noted that US investors are increasing their investment in Japanese stocks in pursuit of their superior returns. (Technology and Artificial Intelligence) The industry saw particularly strong capital inflows.
Bruce Kirk, chief Japan equity strategist at Goldman Sachs , said that U.S. funds are currently flowing into the Japanese market at the fastest pace since the "Abenomics" era .
He also stated that active participation by US investors in the Japanese stock market has risen to its highest level since October 2022.
Goldman Sachs strategists say that increased U.S. investor participation could mark a turning point as foreign investors shift from value stocks to growth and technology stocks after years of market dominance.
He pointed out that compared to the height of "Abenomics," global investors' holdings of Japanese stocks remain low, which means there is room for further buying .
Data released by the Japan Exchange Group shows that foreign investors made net purchases of 384 billion yen ($2.5 billion) in Japanese stock spot and futures in the last two weeks of October.
Japanese stocks rose in early trading on Monday, reaching 50,577 points, a gain of 0.6% as of press time. Since hitting its year-to-date low in April, the Nikkei 225 index has climbed steadily over the past few months, repeatedly setting new record highs. However, since the beginning of this month, concerns about an "AI bubble" have intensified, causing the Nikkei 225 index to retreat from its highs.
(Article source: CLS)
