Foreign appetite for Japanese equities has reversed sharply, with overseas investors pulling out of Japan’s stock market after a previous period of net buying. According to the latest data updated on 18 March 2026, foreign investments in Japanese stocks swung from a positive 385.5 billion yen to a net outflow of 1,772.6 billion yen.
The turnaround in flows signals a significant shift in sentiment toward Japan’s equity market. While foreign investors were recently adding to positions, the latest figures indicate widespread selling and profit-taking, or a move to de-risk exposure. The scale of the reversal—from a modest net inflow to a sizeable net outflow—highlights how quickly global investors can change course in response to evolving market conditions and perceived risks in Japan’s stock market.
