Foreign buying of Japanese shares was \u00a52 billion on 3 April. This compares with \u00a5-4 billion previously. <\/p>\n
The latest reading shows a swing of \u00a56 billion. It moved from net selling to net buying.<\/p>\n
We are seeing a notable shift in sentiment as of April 3rd, with foreign investors turning into net buyers of Japanese stocks. This \u00a52 billion inflow marks a reversal from the previous period’s \u00a54 billion outflow. This could be an early signal that foreign capital is starting to rotate back into the market.<\/p>\n
This inflow comes as the yen continues to show weakness, with the USD\/JPY rate hovering around the 162 level. A cheaper yen makes Japanese equities more attractive for overseas buyers and boosts the earnings of Japan’s large exporters. The Bank of Japan has also signaled it will remain accommodative, creating a supportive environment for stocks.<\/p>\n
The Nikkei 225 has been consolidating near the 44,500 mark after its strong performance last year. We saw foreign inflows precede major rallies throughout 2025, suggesting this could be a catalyst for the next move higher. Ongoing corporate governance reforms continue to be a major long-term incentive for investment.<\/p>\n
Given this, we should consider positioning for a potential upside breakout. Buying Nikkei 225 call options offers a defined-risk way to capture gains if the index climbs in the coming weeks. Implied volatility has been relatively subdued during this consolidation, making option premiums more affordable.<\/p>\n
For those looking at a more direct play, long positions in Nikkei futures could be initiated. To manage the currency exposure, this could be paired with a long USD\/JPY position through futures or options. This strategy benefits from both a rising stock market and a weakening yen.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Foreign investors bought \u00a52bn Japanese shares April 3, reversing \u00a54bn selling previously; a \u00a56bn swing to buying.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-44494","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/44494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=44494"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/44494\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=44494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=44494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=44494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}