As the Nikkei index climbs, foreign investors ended their 17-week streak of net purchases, while Japanese insurance companies have recorded record sales.

Data from the Japan Exchange Group shows that while the US-Japan trade agreement boosted the Japanese stock market, foreign investors ended their 17-week buying streak last week. Japanese insurance companies also took the opportunity of the rebound in the Japanese stock market to profit significantly. The data shows that foreign investors sold 189 billion (approximately $1.3 billion) worth of stocks in the week ending August 1, marking the first net selling since the end of March and ending their 17-week buying streak. Additionally, Japanese institutional investors also took the opportunity to profit. Japanese insurance companies, in particular, sold a net 282 billion worth of stocks, the highest level on record, indicating that they are accelerating the pace of selling cross-held stocks. On July 22, the US announced a new tariff agreement with Japan, reducing tariffs on Japanese exports (including cars) from 25% to 15%. This was seen as a positive development for the market, especially considering the challenges faced in previous reports of negotiations between the US and Japan to lower car tariffs. The tariff agreement also includes Japan's $55 billion investment plan in the US. Some analysts point out that the results of the US-Japan tariff agreement were better than expected, especially for the automotive industry. Previously, the US imposed a 25% tariff on Japanese cars, which account for over 25% of Japan's total exports to the US. It is worth mentioning that on Thursday, the Nikkei index reached a record high due to the strong overnight performance of US stocks, as well as robust financial reports from Japanese companies strengthening expectations for wage growth. The index closed up 0.72% at 2987.92 points, marking the third consecutive trading day of gains; it briefly touched a historical high of 2993.21 points during the session. With the resolution of uncertainty surrounding US tariffs, the Japanese stock market is in a relatively positive position, with room for earnings per share to be raised. Additionally, corporate governance reforms led by the Tokyo Stock Exchange (TSE) have continued to yield results, improving the quality of listed companies and making the overall market more shareholder-friendly.