Foreign appetite for Japanese equities has rebounded sharply, with foreign investments in Japanese stocks swinging from a net outflow of ¥354.2 billion to a robust net inflow of ¥2,191.9 billion, according to data updated on 7 October 2026.
The turnaround in flows signals a marked improvement in sentiment toward Japan’s equity market, reversing the previous period’s selling by overseas investors. While the earlier reading reflected net selling pressure, the latest figure points to a strong return of foreign capital into Japanese stocks on a net basis.
The sharp shift into positive territory places foreign investors back in a supporting role for the Tokyo market, underscoring renewed interest in Japanese assets after the prior bout of outflows. Market participants will be watching upcoming data to see whether this inflow momentum can be sustained in the coming periods.
