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11 Feb 2014
Flash: Expect Japan flows to remain JPY negative - Nomura
FXStreet (Bali) - Nomura offers some valuable insights into January's MOF international capital flow data and December's BOP figures in Japan, concluding that there continues to be mixed signals from corporate and investor flows, although overall still Yen negatives.
Key Quotes
"December current account deficits widened further, while Japanese firms’ FDI activities accelerated. Corporate flows clearly remain JPY negative for now. Japanese investors’ activities are more mixed though."
"Toshin companies became net buyers of foreign assets as expected in January, but the amount was relatively small after the introduction of the NISA."
"Pension funds and lifers became net sellers of foreign securities again. We still expect Japan flows including corporate flows to remain JPY negative, but momentum may be weaker for now, after the sharp decline in global yields"
Key Quotes
"December current account deficits widened further, while Japanese firms’ FDI activities accelerated. Corporate flows clearly remain JPY negative for now. Japanese investors’ activities are more mixed though."
"Toshin companies became net buyers of foreign assets as expected in January, but the amount was relatively small after the introduction of the NISA."
"Pension funds and lifers became net sellers of foreign securities again. We still expect Japan flows including corporate flows to remain JPY negative, but momentum may be weaker for now, after the sharp decline in global yields"