Japanese retail investors bought stocks in large quantities last week, with net purchases hitting a nearly two-year high.

Data from the Japan Exchange Group Corporation shows that individual investors in Japan net bought 834.9 billion yen of Japanese stocks last week, the highest level since April 2024. Against the backdrop of a strengthening yen and falling stock prices last week, reverse operations and buy orders at lows remained active, with net buying volume increasing for the second consecutive week. Other factors supporting individual buying include solid corporate earnings performance, as well as market expectations for further stock market gains after the election on February 8. In addition, Yugo Tsuboi, Chief Strategist at Daiwa Securities, stated that the new round of investment quotas gained by the tax-exempt investment account "NISA" during the New Year also provided support for the market.