Foreign Investors Flee Japanese Stocks Over Yen Intervention Concerns

Foreign investors have been selling Japanese stocks for two consecutive weeks due to concerns over yen intervention measures, according to data from Japan's Ministry of Finance. The net sales totalled 368.5 billion yen (US$2.31 billion) during the week ending August 8.

Last week, Japan's Finance Ministry announced that Tokyo and Washington had conducted coordinated yen-buying intervention and would not hesitate to take further action if necessary.

The stronger yen is seen as a concern for foreign investors, as it reduces their purchasing power in dollar terms for new stock purchases. The Nikkei, however, rose 1.93% last week, tracking gains in US technology stocks.