Affected by economic uncertainty under Trump, overseas investors poured into the Japanese stock market in droves last year to seek safe haven, and their purchase volume hit a new high since 2013. According to data from the Tokyo Stock Exchange, overseas investors made a net purchase of about 5.4 trillion yen of Japanese stock in 2025, which is 35 times the amount purchased in 2024. Foreign investors are second only to Japanese companies in terms of purchasing volume. The latter made a net purchase of 10.5 trillion yen of domestic stocks against the backdrop of a continuing wave of Japanese stock buybacks. Japanese stock market analyst Pelham Smithers wrote in the report that last year's “aggressive” foreign purchases mainly stemmed from optimistic expectations about the Japanese economy, thanks to the Bank of Japan's steady monetary policy normalization. “Foreign investors are often strongly driven by economic strength and economic expectations,” he wrote. However, Smithers warned that since the Japanese stock index has risen to an all-time high, foreign investors may become more picky in choosing this year.

Affected by economic uncertainty under Trump, overseas investors poured into the Japanese stock market in droves last year to seek safe haven, and their purchase volume hit a new high since 2013. According to data from the Tokyo Stock Exchange, overseas investors made a net purchase of about 5.4 trillion yen of Japanese stock in 2025, which is 35 times the amount purchased in 2024. Foreign investors are second only to Japanese companies in terms of purchasing volume. The latter made a net purchase of 10.5 trillion yen of domestic stocks against the backdrop of a continuing wave of Japanese stock buybacks. Japanese stock market analyst Pelham Smithers wrote in the report that last year's “aggressive” foreign purchases mainly stemmed from optimistic expectations about the Japanese economy, thanks to the Bank of Japan's steady monetary policy normalization. “Foreign investors are often strongly driven by economic strength and economic expectations,” he wrote. However, Smithers warned that since the Japanese stock index has risen to an all-time high, foreign investors may become more picky in choosing this year.