© Reuters. FILE PHOTO: A passerby is reflected on an electronic screen displaying a graph showing recent Japan’s Nikkei share average movements and stock prices as the share average hits a record high in Tokyo, Japan February 26, 2024. REUTERS/Issei Kato/File Photo
(Reuters) – Japanese investors are hesitant to own their home stock markets despite the Nikkei’s recent surge above bubble-era peaks because of uncertainty about sustained corporate returns and lingering memories of the 1990s market crash.
Instead, they are allocating more money to foreign equities, drawn by the promising outlook for U.S. stocks and its tech sector, and emerging economies such as India.
BY THE NUMBERS
According to Morningstar, Japanese equity funds focusing solely on domestic markets received only $1.2 billion in January, compared with an inflow of $7.8 billion into funds with a foreign investment focus.
Of this, U.S.-focused equity funds received…
