The flow of foreign funds into Japanese stocks is poised to accelerate after the Liberal Democratic Party¡¯s landslide election, with analysts forecasting as much as a five-fold rise in buying over the next few months, possibly surpassing levels seen during the era of former Prime Minister Shinzo Abe.
Global investors are looking at earnings-supportive factors like improved growth dynamics, corporate reform and reflation, following Prime Minister Sanae Takaichi¡¯s historic election triumph that gives her the mandate to push ahead with bold spending plans.
Net foreign buying of ?10 trillion ($64.1 billion) is expected over the next three months, at the earliest, if expectations rise that the Takaichi government can implement growth strategies within the bounds of moderate fiscal expansion, said Tomochika Kitaoka, chief equity strategist at Nomura Securities.
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