After dumping, large-scale repurchase; foreign capital net bought 2.48 trillion yen in Japanese stocks last week.

On October 9, Jin10 reported that despite a reduction in market expectations for the victory of the ruling party's candidate, who supports stimulus policies, preliminary data from the Japanese Ministry of Finance shows that foreign investors still net purchased a record 2.48 trillion yen in Japanese stocks last week. This influx of funds occurred after three consecutive weeks of large-scale selling. This aligns with a pattern observed in recent years: foreign capital typically sells stocks in March and September, then buys back in April and October. This seasonality is believed to be due to investors optimizing their dividend tax strategies. The Japanese stock market fell last week, partly due to a large number of companies paying dividends based on the shareholder register as of September 30, which dragged down the benchmark TOPIX index. Foreign brokerages are seen as selling stocks during this period and then buying them back, which is part of their cross-border OTC trading conducted between their own accounts for arbitrage, cost, and tax purposes. This practice has previously led to discrepancies between the Ministry of Finance data and another set of data the Japan Exchange Group plans to release later on Thursday.