Market scramble_ foreigners keep chasing japanese futures – nikkei asian review


The most recent of those buys occurred Tuesday morning. Binary search example Although the Nikkei average closed a shade lower at the midday break, the Topix index remained on the positive side. Kwacha to usd Data released later that day revealed that none other than Goldman Sachs picked up some 5,397 Topix futures contracts on a net basis.

This type of periodic purchasing of futures based on the Topix index by foreign brokerages has been ongoing since the U.S. 1 aud to usd presidential election in November. Marriott hotel rates Goldman Sachs in particular has taken out a huge long position, adding another 1,139 contracts on a net basis Wednesday. Convert binary to text Outstanding purchases total 74,838 contracts, a level not seen since August 2015.

While short-term speculators prefer Nikkei average futures due to their high level of liquidity, many long-term investors are seen trading Topix futures.

Convert usd to cny There are cases where Japanese equities are temporarily kept overweight using futures that can be flexibly traded. Funny quotes with pictures The futures are then sold off for individual cash stocks that flesh out portfolios.

“There is no mistaking that purchases by American pension funds and others are behind” the orders by the foreign brokerages, said the trader mentioned earlier. Jpy usd exchange rate “The bullish sentiment will continue.”

The yen depreciation that dramatically accelerated since Donald Trump won the U.S. Gbp usd chart live election has lost steam recently. Us stock futures marketwatch With the inauguration coming up, investors are growing more jittery about his economic policies. Program for binary search So the question remains what is motivating overseas stock pickers to snap up Japanese equities.

A fund manager at a foreign asset management company believes corporate earnings forecasts are the main driver. When does the futures market open Japanese equities are much more likely to be subject to analyst upgrades when compared with other major economies, according to data compiled by Goldman Sachs on Monday.

Corporate America is being weighed down by the strong dollar and rising interest rates, two factors that may limit improvements in profitability. Nzd to usd converter But Japanese companies are more than likely to secure bigger profits in the near future if the yen rate continues to hover around 115 per dollar. Us stock futures market Price-book ratios also indicate that Japanese equities are comparatively undervalued. Usd gbp conversion Foreigners can be safely optimistic about the Japanese market, said an official at U.S. Fraction worksheets free asset manager GMO.

There were signs Wednesday that foreign investors’ appetites have spread beyond futures. Binary multiplication examples Sony, where foreigners make up over half of shareholders, saw buy orders suddenly pick up on Tuesday, and on Wednesday the stock topped even last year’s high.