Reference News Network, March 22 report: According to the Bloomberg News website, March 19 report, foreign investors are fleeing the Japanese stock market as the risk of oil threatens the outlook.
Due to growing concerns that rising oil prices will hit Japan's economy, foreigners became net sellers of Japanese stocks last week, the first time since 2026.
Data from the Japan Exchange Group showed that in the week ending March 13, overseas investors net sold about 491 billion yen (about 3.1 billion U.S. dollars) of Japanese stocks, the largest weekly net selling amount since September last year. This sell-off marked the end of nine consecutive weeks of buying, which had been mainly driven by optimism about the fiscal expansion policy of Japanese Prime Minister Takahashi Hayato.
The glow of the Japanese stock market has dimmed due to worries that rising oil prices caused by the Iran war could exacerbate inflation and affect corporate profits. Over 90% of Japan's oil imports come from the Middle East, and its industrial supply chain is heavily dependent on naphtha from the region.
Shingo Higashibara, chief market economist at Mitsubishi UFJ Trust Bank, said: "Many investors believe Japan is one of the countries most affected by rising oil prices, which is why the Japanese stock market is performing poorly."
The Nikkei index rose 17% in the first two months of this year, but has fallen 9.3% since the outbreak of the Iran conflict; by contrast, the S&P 500 index fell 3.7%.
The Bank of Japan on the 19th added the situation in the Middle East to the list of risk factors and announced that it would maintain interest rates unchanged. Bank of Japan Governor Haruhiko Kuroda said he expects rising oil prices to put upward pressure on Japan's prices.
The Nikkei 225 index closed down 3.4% on the 19th, while the broader TOPIX index fell 2.9%. (Translation/ Yang Xinpeng)
Original: toutiao.com/article/7620033185347158579/
Statement: This article represents the views of the author himself.