Foreign buying of Japan securities to suffer fall in 4 years

27 Nov, 2006

Net purchases of Japanese stocks and bonds by foreign investors this year are likely to fall for the first time in four years, a newspaper said Sunday. Net purchases of Japanese stocks and medium- to long-term bonds by foreign investors reached a record 18 trillion yen (155 billion dollars) last year.
But such purchases came to 11.6 trillion yen through November 18 this year, down more than 30 percent from the same period the previous year, the Nihon Keizai Shimbun said.
The slide reflects the murky outlook for Japanese corporate earnings amid concerns about a slowdown in the US economy as well as moves by overseas investors to reallocate funds to China and other growth markets, the business daily said.

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