Japanese investors snap up foreign long-term bonds as tech stocks slide

Japanese investors bought foreign long-term bonds for the first time in seven weeks, turning to perceived safety as technology shares fell and the US Federal Reserve kept interest rates steady. The shift matters because traders are watching whether money returning to Japan will affect domestic and overseas markets.

In the week ending 31 October, Japanese investors bought a net 1.31 trillion yen (£6.6 billion) of foreign long-term bonds, after selling 3.51 trillion yen over the previous six weeks. They sold 209.3 billion yen in foreign short-term bills, while overseas investors bought 2.36 trillion yen of Japanese bonds, the most since 21 March. Japan’s investors also bought 1.08 trillion yen in foreign shares, extending their buying streak to three weeks; the Nikkei has fallen about 6.14 per cent this week.