The bull market in Japanese stocks is not over yet! Goldman Sachs: The influx of American funds is the fastest since the "Abenomics" era

Thanks to the strength of the yen and investors' optimistic expectations for the stimulative economic policies of Japanese Prime Minister Sanae Takashi, the Nikkei 225 index has risen by about 30% so far this year, far surpassing the 14% increase in the S&P 500 index. Goldman Sachs believes that foreign capital inflows will further boost Japanese stocks, although there may be some short-term consolidation. Goldman Sachs recently pointed out that American investors are increasing their investments in Japanese stocks to chase their excellent returns. The inflow of funds into the technology and artificial intelligence industries is particularly strong. Bruce Kirk, chief Japanese equity strategist at Goldman Sachs, said that the speed at which American funds are flowing into the Japanese market is currently at its fastest pace since the "Abenomics" era. He also stated that American investors' active participation in the Japanese stock market has reached its highest level since October 2022. Goldman Sachs strategists said that as foreign investors shift from value stocks to growth and technology stocks after dominating the market for many years, the increased participation of American investors may signal a turning point. Compared to the peak of the "Abenomics" era, the size of Japanese stocks held by global investors is still low, which means there is room for further buying. Data released by the Japan Exchange Group shows that in the last two weeks of October, foreign investors bought a net 384 billion yen ($25 billion) of Japanese stocks in cash and futures. In early trading on Monday, the Japanese stock market rose, reaching 50,577 points, up 0.6% as of the time of writing. Since hitting a low for the year in April, the Nikkei 225 index has been steadily climbing over the past few months, reaching historical highs. However, this month, concerns about an "AI bubble" in the market have intensified, causing the Nikkei 225 index to retreat from its peak. This article is reproduced from "Cai Lianshe", author: Bian Chun; GMTEight editor: Feng Qiuyi.