From Wall Street to Tokyo

Global Funds Flee US Stocks, Flock to Japan at Record Levels

Hi everyone,
Something big is happening in global markets — and it’s Japan’s moment to shine. 🇯🇵

As investor uncertainty grows in the US market, global funds are making a historic pivot.
Net purchases of Japanese equities have hit an all-time high.

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Why the Shift?

Several key drivers are behind the exodus from the US and inflows into Japan:

• US market volatility due to Trump-era tariffs, recession fears, and Fed uncertainty
• Investors seeking currency stability and value stocks
• 🇯🇵 Japan benefiting from:
  • BOJ’s ultra-easy monetary policy
  • A weaker yen supporting exporters
  • Corporate reforms attracting foreign investors

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Who’s Buying?

Big names — from US asset managers to European pension funds — are ramping up exposure to:

• Nikkei 225 & TOPIX ETFs
• Industrial giants like Toyota, Hitachi
• AI and semiconductor players like SoftBank, Tokyo Electron

“This is not just a trade. It’s a rotation,” one fund manager told Bloomberg.

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Meanwhile in the US...

• Outflows from US equity funds are accelerating
• Defensive sectors (utilities, staples) are holding up — but growth tech is shaky
• Fear of higher-for-longer interest rates is keeping Wall Street nervous

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TL;DR

Global investors are voting with their wallets:
Pulling out of the US and going all-in on Japan at record levels.
A major shift in sentiment — and possibly, in long-term strategy.

 

From Wall Street to Tokyo