Foreign investors sold ¥2.24 trillion net of Nikkei 225 futures during the week and bought ¥956 billion net of cash equities, according to reports based on published data.
According to published data from the Japan Exchange Group, foreign investors recorded net selling of ¥2.24 trillion in Japan's equity futures market during the week through 2 October, reportedly marking a record high. By contrast, foreign investors were reported to have bought ¥956 billion net of Japanese equities in the cash market over the same period.
Combined net selling of futures and cash equities amounted to approximately ¥1.28 trillion. This reportedly indicates that foreign investors were increasing their cash equity positions while becoming more cautious about adjusting their overall positions.
Market participants said the substantial net selling of futures reflected caution about the next uptrend, and pointed to the importance of a phase in which corporate earnings support stock valuations. Earnings announcements from AI- and semiconductor-related companies are attracting particular attention, with Kioxia Holdings' earnings announcement reportedly expected to be an important indicator.
Possible hedging transactions by overseas securities firms and trading practices following ex-dividend dates have been cited as factors behind the futures selling. Reports also say that the outcome of the US midterm elections could affect how investors build their positions.