An article in the Wall Street Journal says (in relation to the flow of funds data we saw earlier) that “it may still be too soon to expect massive outflows of Japanese money spurred by the central bank’s bold monetary easing measures. ”
- This was the the fifth straight week of selling
“Market talk that Japanese investors will start investing outside Japan has been overblown. …” said Makoto Noji, senior foreign exchange strategist at SMBC Nikko Securities.
But,
analysts say big investors like life insurers don’t tend to respond immediately to BOJ action since it takes time for them to change their allocations to other investments like overseas bonds.
“It’s probably a bit too soon to expect massive outflows. But what you would expect at least is the reduction in repatriation,” said Bill Diviney, a currency strategist at Barclays
Japanese Slow Sales of Assets (gated)-
So, there’s the two sides … gives us something to look forward to and trade next Thursday too.
