Foreign investors last week sold off Japanese stocks on a scale that reached an 18-month high.

With concerns about the impact of the Iran war on the Asian economy increasing in the market, foreign investors sold Japanese stocks on a scale not seen since September 2024 last week. According to data from the Japan Exchange Group, in the week ending March 27, overseas investors net sold approximately 1.51 trillion yen of Japanese equities for the third consecutive week. The TOPIX and Nikkei 225 indices both fell by over 11% in March. "From the perspective of the Japanese stock market, the timing of the Iran war couldn't be worse," said stock analyst Pelham Smithers. Before the rise in oil prices, Japan was already facing a cost of living crisis, and the combination of rising stock prices and stagnant economic growth made stocks more susceptible to corrections.