Interconnectedness of U.S. and Japanese Capital MarketsThe links between the U.S. and Japanese economies are numerous. Japanese investors comprise the single largest block of holders of U.S. Treasuries outside of the United States. In 2022, U.S. private equity firms invested more than $13 billion in Japanese companies, up from roughly $8 billion in 2021. [13] Japan had the fourth largest capital market, with nearly 5% of total capital market activity. [15] This means that U.S. capital markets are relatively larger than total GDP, while Japanese capital markets are slightly smaller.

Source: Wall Street Journal November 17, 2023 17:20 UTC