Foreign Investors Bought a Record 9.7 Trillion Yen of Japanese Stocks in H1, Topping the Abenomics Rush
- Overseas investors net-bought over 9.7 trillion yen of Japanese equities in the first half
- The half-year record surpasses the 2013 Abenomics rally
- AI-chip growth, governance reform and a weak yen drew global money
- Foreign flows are the market's biggest swing factor if they reverse
Who funds this Japanese rally? The tape answers: foreign investors net-bought more than 9.7 trillion yen of stocks in the first half—a record, beating even the early Abenomics stampede of 2013. Three drivers stack up: AI-semiconductor repricing, Tokyo Stock Exchange-driven governance reform with bigger shareholder returns, and a weak yen making Japan cheap in dollars.
History's caveat: the 2013 inflow lifted the Nikkei over 50%, but when foreigners turned sellers the rally stalled. As the market's marginal buyer, their reversal cuts as deeply as their buying lifts—this week's 1,000-yen intraday swings preview that volatility. Practical use: track the TSE's weekly flow data as a dashboard; ride sustained buying, and de-risk on strings of heavy selling. Follow their direction, never their speed.