Japanese investors flip to net selling foreign stocks as inflation fears and energy costs bite

Overseas stock selloff led by trust accounts

Japanese investors turned net sellers of foreign equities in April for the first time in four months, dumping 636.4 billion yen. The move was driven by higher energy costs and renewed inflation worries, while trust accounts spearheaded the selling. Investment trusts and life insurers kept buying abroad. The shift followed faster US inflation, strengthening expectations of longer high interest rates.