Foreign investors have bought a net $39 billion of Japanese stocks since the start of April, according to data from Japan Exchange Group. That meant when the market started to rally, many foreign investors had to scramble to get exposure. “The rally is really being driven by foreign investors who are aggressively buying into Japan’s equity markets,” Kinoshita said. Some foreign investors who have been buying Japanese stocks say that the recent rally has caused a bubble in prices. That pushed down the value of the yen against the dollar, making Japanese shares cheaper for American investors.

Source: Wall Street Journal June 21, 2023 10:41 UTC