Japan recorded a record inflow of foreign investment in April

In April, foreign investors invested a record 8.21 trillion yen in Japanese stocks and long-term bonds, equivalent to $56.6 billion, according to the Japanese Ministry of Finance. This indicator was the highest for this calendar month since the beginning of statistics collection in 1996.

According to Nomura's Yujiro Goto, the tariffs imposed by US President Donald Trump have probably changed global investors' perception of the American economy and assets, prompting them to diversify their investments into other key markets, including Japan. The capital inflow was mainly provided by institutional investors.

The largest inflow of foreign funds into Japanese assets occurred in the first week of April. During this period, the yield on 10-year U.S. government bonds increased by 30 basis points, while Japanese bonds declined by 21 basis points.

Nevertheless, the Japanese and American stock markets showed little change in April: the Nikkei 225 index increased by about 1%, while the S&P 500 declined by less than 1%.