Figures released for the Japanese 2018 fiscal year, which ended March 30
Overseas investors sold off Japanese stocks by the largest margin since 1987 during the year
- About 50bn USD, give or take
Who to? Well, the Bank of Japan’s asset purchases absorbed … all if it. The central bank bought slightly more worth of equity, through exchange-traded funds.
BOJ’s estimated aggregate ETF balance totaled 29 trillion yen as of Wednesday, around 5% of the market capitalization on the TSE’s first section.
Nikkei reports:
- If the Nikkei average sinks below 18,000, the market value of the ETFs held by the bank will fall below book value, BOJ Deputy Gov. Masayoshi Amamiya warned in March. Though the index remains well above that threshold, a sudden downturn would damage the BOJ’s net worth and potentially shake confidence in Japan’s currency.