Goldman Sachs: Large inflows of US capital into the Japanese stock market, with participation reaching the highest level in three years

Gold Ten Data, November 10th - Goldman Sachs states that an increasing number of American investors are buying Japanese stocks focused on technology and artificial intelligence, attracted by their strong returns relative to U.S. stocks. Goldman Sachs’ Chief Japan Equity Strategist Bruce Kirk said, “The inflow of U.S. funds has reached its fastest pace since ‘Abenomics’.” He added that American investors’ active participation in the Japanese stock market has reached its highest level since October 2022. The influx of U.S. funds reflects Japan’s stock market performance this year, boosted by the yen’s appreciation and Prime Minister Sanae Hiyama’s stimulus policies, leading to an optimistic sentiment and a stellar performance in the Japanese stock market. In USD terms, the Nikkei 225 index has risen about 30% this year, far surpassing the 14% increase of the S&P 500 index. Kirk believes that the inflow of foreign capital still has room to grow, as global investors’ net holdings in the Japanese stock market remain well below the peak during Abenomics, and the ongoing demand for asset diversification among global investors may also support this trend.