|

News

    Homepage   >     Original    >     Main body

    International Funds are Actively Trading Japanese Stocks

    Abstract:Japan has been the weakest major currency in the past month. Besides the rising market optimism over trade negotiation and Brexit which reduced demand for safe-haven assets, increase in the trading of Japanese stocks by overseas investors has been another notable factor weighing on the yen.
    900-510-英.jpg

      Japan has been the weakest major currency in the past month. Besides the rising market optimism over trade negotiation and Brexit which reduced demand for safe-haven assets, increase in the trading of Japanese stocks by overseas investors has been another notable factor weighing on the yen. The mechanism behind this is international funds are actively trading Japanese stocks, yet unwilling to bear the associate currency risks.

      Most of the players trading on the Japanese stock market are international hedge funds, and their connecting of equities to the JPY has a significant impact over the currency rate. Due to its high liquidity and well-established market infrastructure for high-frequency trading, Japanese stock market has become a favored ground for short-term trading.

      Currently, oversea funds‘ share in Japan’s stock trading has climbed to its highest since 2005, accounting for over 60% of the total trade volume. Such dominance is even more obvious in derivatives, in which oversea funds account for nearly 80% of the total trade volume. Oversea investors would try to avoid taking equity risk and currency risks at the same time. When the stock market easily moves by 10% or 20%, currency hedging needs to be raised or reduced accordingly.

      Notably, the increase in overseas trading of Japanese stocks and the related currency hedging is showing an implication on another long-running theme - the inverse relation between the yen and the Nikkei 225 Stock Average. According to the statistics compiled by Bloomberg, the yen and the Japanese stocks remained negatively co-related for most of the time since 2006, with the trend approaching a record high since November, 2007.

    分析-11.17.png

    Latest News

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    United States Dollar
    Convertible Amount
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click "Complaints "and "Correction" to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.

    ×

    Select Country/Area