Japan equities drop as foreign selling hits 18-month peak

Foreign investors sold the most Japanese shares since September 2024 last week, reflecting growing concerns over the economic impact of the Iran conflict.

Overseas investors offloaded roughly ¥1.51 trillion ($9.5 billion) in Japanese cash equities for the week ending March 27, Japan Exchange Group data showed, News.Az reports, citing Bloomberg.

This marked the third consecutive week of net selling following a period of net buying.

The selloff contributed to Japan’s worst monthly performance since 2008, with the Topix and Nikkei 225 both falling more than 11% in March. This contrasts sharply with the record gains Tokyo stocks saw in January and February, driven by optimism around Prime Minister Sanae Takaichi’s fiscal spending plans.

Japan’s heavy reliance on Middle Eastern oil—over 90% of imports—makes the economy vulnerable to price spikes. The Nikkei dropped 2.4% on Thursday as Brent crude surged after US President Donald Trump warned of “extremely hard” action against Iran in the coming weeks.

News.Az 

By Nijat Babayev