Retail Investors Dumped Japanese Stocks in US Election Week

(Bloomberg) -- Retail traders offloaded the most Japanese stocks since March last week, when the tight race between Kamala Harris and Donald Trump in the US presidential election kept investors on edge.

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They sold a net ¥743.7 billion ($4.8 billion) in cash equities in the week that ended Nov. 8, data from Japan Exchange Group Inc. show, even as the benchmark Topix index climbed 3.7% as Trump’s victory helped weaken the yen. The week was also a lead up-to Japan’s prime ministerial vote this Monday.

Retail investors likely sold shares as they adjusted their holdings ahead of the US election, and as they took off exposure from instability in domestic politics, said Jumpei Tanaka, a strategist at Pictet Asset Management Japan Ltd. Concern over yen intervention may have also contributed, after the currency weakened past 150 against the dollar again, he said.

Foreign investors were net buyers, adding ¥193.8 billion in cash equities.

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