About Us  |   Contact Us  |   Register  | Login  |   

Follow HedgeWorld on Twitter HedgeWorld on LinkedIn






HEDGEWORLD NEWS
Search the News
Advanced News Search
HedgeWorld News by Region
United States / Americas
Europe
Asia / Australia
International
HedgeWorld News Sections
Managed Futures & Derivatives
Daily News
Regulatory/Legal
Strategies/Analysis
Technology
Opinion
People
Indexes
Other News Features
Most Popular
LexisNexis Headlines
Reuters Headlines
The HedgeWorld Blog
Alternative Advantage Daily Newsletter
RSS Service
Sign Up For Email News Alerts
Reprints



Japanese investors buys nearly $720 mln in foreign currency toshins
05/09/2013 Email this story  |  Printable Version

TOKYO, May 9 (Reuters) - Japanese investors appear to be ploughing more money into foreign currency assets in keeping with widespread expectations that Japan's aggressive push to reflate its economy would lead to a massive flight of funds out of the country and further weaken the yen.

They bought 71 billion yen ($718.5 million) of foreign currency-denominated toshins, or investment trusts, last week, up from 28 billion yen net purchases in the previous week, according to Nomura.

But Nomura said in a report that Japanese investors still prefer local exposure for now. It said they bought 92 billion yen of domestic assets via toshins last week, a bigger amount than foreign assets.

Japan's Nikkei share average has rallied nearly 66 percent and the yen has weakened 23 percent against the dollar since mid-November, when Prime Minister Shinzo Abe began promising bold expansionary monetary and fiscal policies to pull the world's third-largest economy out of doldrums.

Japanese stocks got a further boost and yen bears took the upper hand after the Bank of Japan announced sweeping stimulus measures on April 4, promising to inject $1.4 trillion into the economy in less than two years.

The massive quantitative easing has heightened expectations that Japanese investors will start to increase their offshore investments to seek higher returns.

Last week, Japanese investors were net buyers of 59 billion yen worth of currency selection-type toshins, which can invest in Japanese assets but offer hedging exposure to foreign currency, such as Brazilian real, Turkish lira and Mexican peso.

Nomura said Brazilian real was the most popular choice.

($1 = 98.8200 Japanese yen) (Reporting by Dominic Lau; Editing by Shri Navaratnam)


Email This Story to a Friend   |   Display Printable Version of This Story

Story Copyright © 1999-2014 Reuters HedgeWorld All rights reserved.

HedgeWorld News is sponsored by:






Lipper    Privacy   User Policy  Legal Disclosure Copyright/DMCA  Site Map    FAQ    Glossary  Thomson Reuters for Hedge Funds
All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of HedgeWorld content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. HedgeWorld is a registered trademark of Thomson Reuters.