Foreign traders buying most Japan stocks since Abenomics heyday as Suga exits

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Foreign investors are set to buy the most Japanese stocks since the heyday of Abenomics after Prime Minister Yoshihide Suga’s shock resignation put Japan back in the headlines.

Fund managers and strategists from JPMorgan Securities Japan Co., Baillie Gifford & Co. and BNP Paribas Asset Management are among a string of investors who say they’re becoming more positive on Japan as markets gear up to learn who will be the next prime minister.

“We have become more bullish,” Ryota Sakagami, chief Japan equity strategist at JPMorgan Securities, wrote in a note. Foreign investors have been “substantially underweight on Japan and primed for significant buying.”

In a market where foreign nationals account for two-thirds of stock trading, a switch in overseas sentiment could change the dynamic. Japanese equities have lagged developed peers for most of this year.

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