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Japan: Toshin momentum accelerates further – Nomura

FXStreet (Barcelona) - Yujiro Goto, Research Analyst at Nomura, notes that Japanese retail investors have continued to purchase foreign securities and currencies via the toshin market, still favouring the Asian FX basket.

Key Quotes

“Retail investors continued to purchase foreign assets via toshins at a strong pace last week, according to NRI. They bought JPY232bn ($1.9bn) of foreign securities, the strongest pace since early October last year. This was the 15th week in a row of net purchases.”

“Retail investors bought foreign assets via toshins at a record pace in February, according to MOF data, and their appetite to increase foreign asset exposure remains strong in.”

“Toshin momentum has gathered steam, as risk sentiment among retail investors has improved steadily. In addition, outstanding investment exposure via NISA has been rising steadily, according to the FSA, suggesting the introduction of the NISA is also supporting strong toshin momentum.”

“Retail investors were net buyers of foreign currencies in the currency selection-type toshin market last week for the first time in three weeks. They bought JPY3bn ($0.3mn) of foreign currencies via toshins.”

“They continued to purchase the Asian currency basket, to the tune of JPY20bn, while selling USD (-JPY6bn) and BRL (- JPY3bn) at a slower pace. Retail investors’ interest in the Asian currencies also remains strong in the Uridashi market.”

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