Japan’s assets witnessed record flows in April, as investors fled from the American market

Japan witnessed standard foreign flows in its long -term shares and bonds in April, as investors fled the American market after President Donald Trump’s trade against both friends and enemies.

Investors abroad He bought 8.21 trillion yen ($ 56.6 billion) of long -term stocks and bonds in April, according to government data. The net flows were the largest for the evaluation month since the Japanese Ministry of Finance began collecting data in 1996, according to Morningstar.

“It is possible that Trump’s shocks will change the tariff of global investors over the American economy and asset performance, which probably diversified away from the United States to other major markets, including Japan,” said Yujiro Goto, FX’s head of FX in Japan.

Now, with the United States alleviating its commercial position and amazing staff, including China, confidence is restored in American assets. So, what is this code for Japanese origins?

Most of the 8.21 trillion yen of net flows occurred in the first week immediately after April 2, according to the ministry’s data.

In the aftermath of the “mutual” definitions declaring Trump, the Treasury Department in the United States decreased for 10 years by 30 basis points (from April 3 to 9), while Japan’s return for 10 years decreased by 21 basis points (2 to 8 April).

While the shares witnessed globally a sale in the wake of the Trump tariff directly, for the full month, Japan Nikki 225 More than 1 % rose, compared to S & P 500Which decreased slightly less than 1 %.

Rashmi Garj, chief wallet manager in the capital, said that the Japanese origins are generally a haven, as its appeal increased as the novel “Sale and the United States” in April.

Goto said in Numora that the flow was largely driven by institutional investors instead of retail investors. Pension funds and other asset managers may bought the shares strongly, while the purchases of Japanese bonds were largely driven by reserve managers, life insurance companies and pension funds, according to Nomura.

“It was a very exceptional month, when you think about everything that happened in the global total economic environment,” said Ki Ocampora, Japanese stock portfolio manager and Japanese stock wallet manager.

“It is clear that this had an impact on the way global investors consider allocating assets towards the United States … they needed to diversify,” CNBC told CNBC.

GARG is expected from Dhabi Capital to slow down the flows in view of the penetration in the US -Chinese tariff talks, and also the deals with other countries are likely to be. Britain in reality It has become the first country to deal with the United States Last week.

Although historical monthly flows may not continue, market monitors still have a positive look at Japanese origin and continue to see strong flows.

Faso Mennon, the administrative director of the investment strategy team, explained that the unprecedented measures of Trump and politics have led to credibility and confidence in its assets, and this may still lead to the investment of global fund managers in the American markets for the benefit of others.

“Given this background, the demand for Japanese origins may remain in good health even if it is not like April,” he said. Menon said that Japan’s ongoing talks with the United States regarding definitions raised some optimism to reduce “mutual” definitions by 24 % on Japan.

Japanese shares will also benefit from corporate governance reforms on the Tokyo Stock Exchange, which has given the priority of shareholders ’returns, and he also wrote one international assets.

TSE governance reforms, which started in March 2023, include companies listed in listing companies whose shares are trading less than a price ratio to one book to “to”Compliance or explanationThe initiative aims to enhance Japan Inc. call. For foreign and local investors.

The assets of the asset management said that this reform program led to possible record levels of shares in Japan, which improves both profits for the share and support the stock prices.

While the dollar regained some power after the sale of April, the possibility of weakening it and Japanese currency to strengthen “logical” for investors to look at Japanese stocks, especially with the passage of the economy.

“So this trend has legs. Japan is likely to continue to see good flows,” Ocamura said.

Markstar Makdad sees clear flows in Japanese stocks more than the past decade amid the governance of improved companies.

However, he does not see the same height of net flow in the Japanese short treasury bills, as is the case when the Bank of Japan was implementing negative interest rates as an opportunity to show off some foreign investors who were present after that no longer exist now.