Sudden change in foreign investment direction! Weekly net selling for the first time in nearly three months, ending a record 11-week inflow into Japanese stocks.

According to the latest data from the Japanese Ministry of Finance, foreign investors sold Japanese stocks net last week, marking the first outflow of funds since March this year. The data shows that in the week ending June 20, foreign investors net sold 524.3 billion (approximately $36.2 billion) worth of Japanese stocks. Despite ongoing concerns about the impact of U.S. tariff policies, foreign investors had accumulated a net purchase of 7.236 trillion in Japanese stocks over the previous 11 weeks. Hiroshi Matsumoto, Senior Client Portfolio Manager at Pictet Asset Management Japan, said, "Although earnings are not so strong, the market is still rising. Therefore, the market's valuation is a bit high." It is worth noting that the Ministry of Finance's data is based on reports from major market participants, with the statistics not only including common stocks but also exchange-traded funds (ETFs) and over-the-counter (OTC) trades. Separate data to be released later by the Tokyo Stock Exchange will only track the trading of listed stocks. Previous data from the exchange also showed that foreign investors had been net buyers of Japanese stocks for 11 consecutive weeks. Many market participants suspect that the continued influx of funds may reflect global investors pulling out of U.S. stocks.