{"id":39322,"date":"2026-01-16T11:42:57","date_gmt":"2026-01-16T03:42:57","guid":{"rendered":"https:\/\/www.vtmarkets.com\/uncategorized\/japans-foreign-investment-in-stocks-decreased-from-%c2%a5124-9-billion-to-%c2%a51-billion-recently\/"},"modified":"2026-01-16T11:42:57","modified_gmt":"2026-01-16T03:42:57","slug":"japans-foreign-investment-in-stocks-decreased-from-%c2%a5124-9-billion-to-%c2%a51-billion-recently","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/live-updates\/japans-foreign-investment-in-stocks-decreased-from-%c2%a5124-9-billion-to-%c2%a51-billion-recently\/","title":{"rendered":"Japan&#8217;s foreign investment in stocks decreased from \u00a5124.9 billion to \u00a51 billion recently"},"content":{"rendered":"<p>Foreign investment in Japanese stocks dropped sharply from \u00a5124.9 billion to just \u00a51 billion by January 9. This decline occurred amidst various currency and commodity market movements.<\/p>\n<p>The Euro has faced downward pressure, trading near its 200-day moving average against the US Dollar, bolstered by strong US data and treasury yields. Similarly, the British Pound remains under pressure against the US Dollar, influenced by expectations around Federal Reserve interest rates.<\/p>\n<h3>Commodity Market Movements<\/h3>\n<p>Gold prices have decreased to near $4,600 as demand for safe havens eased. Meanwhile, Ethereum&#8217;s market rise was driven by spot market activity and reduced leverage exposure, with its leverage ratio declining from 0.79 to 0.66.<\/p>\n<p>Several brokers were analysed for their performance in 2026, highlighting diverse options for traders worldwide. These included brokers with low spreads and those catering specifically to different regions, such as Mena and Latam.<\/p>\n<p>Ripple continued to face pressure in the cryptocurrency market despite expanding its operations in Europe. A preliminary approval for an Electronic Money Institution license was obtained in Luxembourg.<\/p>\n<p>Readers are cautioned on the potential risks associated with investing. They are encouraged to conduct comprehensive research before making any investment decisions.<\/p>\n<h3>US Dollar Strength<\/h3>\n<p>We&#8217;ve seen a stunning collapse in foreign investment in Japanese stocks, with inflows dropping from over \u00a5124 billion to virtually zero in a single week. This signals a major risk-off move for Japan, making puts on the Nikkei 225 index a compelling strategy for the coming weeks. Looking back at late 2025, we saw foreign funds becoming hesitant, and historically, such sharp outflows have preceded significant market corrections.<\/p>\n<p>The US Dollar remains the clear leader, driven by a strong labor market and a Federal Reserve that is not expected to cut rates soon. We should continue to favor strategies that benefit from dollar strength, such as selling call options on pairs like EUR\/USD, especially as it tests its critical 200-day moving average near 1.1580. With recent US jobless claims data consistently hovering near the 210,000 mark, there is little reason to bet against the dollar&#8217;s current momentum.<\/p>\n<p>This dollar strength, combined with easing geopolitical tensions, is a direct headwind for gold. Buying puts on gold futures looks attractive as the metal loses its safe-haven appeal and non-yielding assets suffer when interest rates stay high. The drop below $4,600 is a key technical breakdown that supports further downside.<\/p>\n<p>While some are rotating into Asia for diversification, the immediate data from Japan suggests this is not a blind bet. The capital flight from Tokyo shows that broad Asian index exposure is risky, and traders should be highly selective. This environment reinforces the relative safety of US-based assets for now.<\/p>\n<p><b><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>\u00a0and\u00a0<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Foreign investment in Japan plunged, currencies wavered, and crypto markets shifted amid global economic and regulatory changes.<\/p>\n","protected":false},"author":62,"featured_media":16987,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-39322","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/39322","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=39322"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/39322\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16987"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=39322"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=39322"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=39322"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}