Japanese Investors Shift to Net Selling of Foreign Assets in December
In December 2025, Japanese investors reversed their trend of net buying foreign assets, selling 374.2 billion yen in long-term bonds and 350.4 billion yen in equities. This tactical shift, driven by rising U.S. Treasury yields and elevated valuations, contrasts with the strong inflows seen earlier in the year.
Insights:
In a notable shift, Japanese investors turned from net buyers to net sellers of foreign assets in December 2025, unloading 374.2 billion yen in foreign long-term bonds and 350.4 billion yen in foreign equities. This reversal comes after a month of strong net investment, where Japanese investors added 718.9 billion yen to their foreign bond holdings in November. The change highlights a tactical response to rising U.S. Treasury yields and elevated valuations.
