Japan stocks see sharp foreign outflows as investors cash out of tech

Tokyo Electron

02/07/2026 05:26

    July 2 (Reuters) - Overseas investors sold Japanese stocks at the fastest weekly pace in about three months in the week ended June 27, taking profits from technology shares amid stretched valuations after a blistering run-up last quarter.
There has also been mounting unease over AI spending funded through debt.
Non-native investors withdrew a net 1.82 trillion yen ($11.20 billion) from Japanese stocks during the week in their largest weekly net sales since March 28, data from the Ministry of Finance showed on Thursday.
The Nikkei 225.N225 rallied 37.21% last quarter, prompting investors to lock in profits in high-flying technology stocks last week.
Kioxia 285A.T and Tokyo Electron 8035.T fell 15.12% and 3.24%, respectively, while SoftBank Group 9984.T shed 12.45% amid reports of a delay in OpenAI's IPO.
Japanese long-term bonds, meanwhile, saw foreign outflows for a fourth straight week, totalling 493.7 billion yen. Foreign investors also sold 2.43 trillion yen of short-term bills.
Elsewhere, Japanese investors bought 147.7 billion yen of foreign stocks, marking a second consecutive weekly net purchase.
In overseas bond markets, Japanese investors snapped a three-week buying streak in foreign long-term bonds with net sales of 280.1 billion yen.
($1 = 162.5000 yen)

(Reporting by Gaurav Dogra; Editing by Harikrishnan Nair)
((gaurav.dogra@thomsonreuters.com; +91(080) 67496197;))