Feb 20 (Reuters) - Japanese equity markets saw a third
straight week of foreign outflows in the week through February
15, influenced by shifts in U.S. tariff policies and a
strengthening yen that dampened demand for export-dependent
Japanese companies.
Foreigners pulled out a net 352.8 billion yen ($2.34
billion) from Japanese stocks last week following about 384.4
billion yen of net sales in the prior week, according to Japan's
Ministry of Finance data.
Last week, U.S. President Donald Trump raised tariffs on
steel and aluminium to 25%. Trump has imposed or threatened
additional tariffs on goods from China, Mexico, Canada, and
other sectors since his inauguration.
Though Japanese stocks are likely to rise following this
results season, a full-fledged rally is not expected until
April-June, Bank of America said in a note on Thursday.
"With concerns about U.S. tariffs weighing on the market, we
may not have a clearer picture until Apr-Jun. As long as the
external environment remains uncertain, full-year company
guidance is likely to remain conservative, posing a double
burden on Japanese stocks."
Meanwhile, Japanese long-term debt securities attracted a
significant 788.8 billion yen of foreign inflows last week, the
highest in four weeks. However, short-term bills saw 912.8
billion yen of outflows, the biggest weekly net selling by
foreign investors since December 28.
In the international equities markets, Japanese investors
bought a net 345.4 billion yen of securities, partly reversing
1.27 trillion yen of net sales, a week ago.
They also purchased 241 billion yen of long-term and 251
billion yen of short-term foreign bonds, extending the net
buying streak into a second successive week.
($1 = 150.7200 yen)