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
Nomura said Brazilian real was the most popular choice.
($1 = 98.8200 Japanese yen)
(Reporting by Dominic Lau; Editing by Shri Navaratnam)